Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Nearly 30 years of experience in the Korean/Asian equity research. Major sectors coverage include the following:
- Technology 
- Consumer 
- Special Situations/Deep Value Plays
- Tender Offers/M&As
- Holdcos/Stubs
- Asian Unicorns/Private Companies

Korea/Asia, Events, IPOs

Lotte Corp: Worsening Balance Sheet Offset by Its High Treasury Shares Level

Updated NAV Valuations of Doosan Corp, Hanwha Corp, CJ Corp, GS Holdings, and Lotte Corp

Fight for the Lotte Group Between the Shin Brothers Again?

Cancellation of Existing Treasury Shares in Korea - Government Likely to Provide a GRACE PERIOD

Lee Jae-Myung Becomes the New South Korean President - Four Investment Themes That Could Outperform

Douglas Research Advisory

<ul>
<li>After the market close on 26 June, LOTTE Corporation (004990 KS) announced that it sold 5% of its outstanding shares worth 145 billion won to its affiliate Lotte Moolsan. </li>
<li>This is poor corporate governance since the company should be cancelling the treasury shares instead.</li>
<li>Major reason why Lotte Corp sold its 5% stake in the company to Lotte Moolsan is to have the Lotte Group Chairman's Shin family maintain control over the Lotte Group. </li>
</ul>


After the market close on 26 June, LOTTE Corporation (004990 KS) announced that it sold 5% of its outstanding shares worth 145 billion won to its affiliate Lotte Moolsan. 
This is poor corporate governance since the company should be cancelling the treasury shares instead.
Major reason why Lotte Corp sold its 5% stake in the company to Lotte Moolsan is to have the Lotte Group Chairman's Shin family maintain control over the Lotte Group. 


Lotte Corp Sells 145 Billion Won Worth of Treasury Shares to Lotte Moolsan  - Negative Governance