Lotte Chemical announced on November 13 that it has sold its entire stake in a Pakistani subsidiary as part of its business reorganization. The sale fetched 98 billion won, with a total of 127.6 billion won secured including dividends over the past three years. This move aims to strengthen financial soundness by divesting non-core assets.
Lotte Chemical announced in a press release on November 13 that it sold its 75.01 percent stake in Lotte Chemical Pakistan Ltd., a producer of purified terephthalic acid, to PTA Global Holdings for 98 billion won ($67 million). PTA Global Holdings is a special purpose vehicle established by AsiaPak Investments Ltd., a Pakistani private equity fund, and UAE-based petrochemical trading firm Montage Commodities FZCO.
The chemical arm of South Korea's Lotte Group secured a total of 127.6 billion won from the subsidiary, including dividend income over the past three years. The divestment forms part of efforts to streamline its business portfolio, enhance competitiveness in alignment with government-led industrial restructuring, and bolster financial soundness by offloading non-core assets. Lotte Chemical manufactures basic materials like polyethylene and ethylene, used in plastics and industrial chemicals for sectors including construction and automotive.
"We will focus on expanding the share of value-added materials, such as high-performance engineering plastics, to improve profitability," a company spokesperson said. For the January-September period, the company's net loss narrowed to 681.36 billion won from 881.14 billion won a year earlier, aided by increased sales of high-end products.