Lotte Fine Chemical Participates in Doosan Solus Acquisition... 290 Billion KRW Investment

[Asia Economy Reporter Park So-yeon] Lotte Group affiliate Lotte Fine Chemical will invest 290 billion KRW in a fund established to acquire Doosan Solus. Analysts say this move strengthens Lotte Group's electric vehicle battery materials business.

On the 23rd, Lotte Fine Chemical announced that it will contribute 290 billion KRW to Skyscraper Long-Term Strategic Private Equity Partnership, a management participation private equity fund established by Skylake Private Equity Fund (PEF).

This fund is established by the private equity firm Skylake Investment to acquire Doosan Solus. Out of the approximately 700 billion KRW fund size, Lotte Fine Chemical’s 290 billion KRW investment will allow it to acquire about 20% of Doosan Solus’s shares.

Lotte Fine Chemical explained, "We will participate as a limited partner to generate investment returns," adding, "We judged that this aligns with our mid- to long-term direction of expanding the specialty (high value-added special materials) business."

When Doosan Solus was put up for sale in June, Lotte Group was considered a strong acquisition candidate but did not actually participate in the bidding.

However, by investing through Skylake, Lotte Group is participating in the acquisition of Doosan Solus, and there is speculation that it may have priority to acquire shares when Skylake sells Doosan Solus shares in the future.

Previously, after Lotte Chemical failed to acquire the Japanese materials company Hitachi Chemical last year, it purchased a 4.69% stake in Showa Denko, the Japanese company that acquired Hitachi Chemical, in May this year.

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