Communicator

KUALA LUMPUR (March 6): Lotte Chemical Titan Holding Bhd announced that its parent company, Lotte Chemical Corporation (LCC), is selling a 25% stake in PT Lotte Chemical Indonesia (LCI), which will lower LCC's direct interest in the Lotte Chemical Indonesia New Ethylene Project to 24% from 49%.

LC Titan, in which LCC controls 75.86%, holds the remaining 51% stake in LCI.

LC Titan said LCC has received an offer from a group of companies — comprising one securities company and five special purpose corporations set up by five other securities companies — for the 25% stake in LCI for US$462.7 million (about RM2.05 billion).

LC Titan, which has a right of first refusal to the stake that LCC is selling to a third party at the offer price that LCC gets — based on a 2019 shareholders agreement between LCI, LC Titan and LCC — has decided not to take up the offer. 

"The board of directors of LC Titan wishes to announce that the Board had deliberated and made a decision not to accept the offer by LCC to purchase the sale shares held by LCC in LCI for US$462.7 million," LC Titan's bourse filing read.

Therefore, while LC Titan's stake in LCI will remain at 51%, its parent's direct interest in the ethylene project in Indonesia will be reduced to 24% following the stake sale.


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