Lotte Chemical Raises 1 Trillion KRW in Paid-in Capital Increase to Fund Future Businesses Including Battery Materials
Proactive Fund Securing for Future Growth Investments in Battery Materials and More
Long-term Borrowings Account for 65%
Maintaining Minimum Operating Funds Over 1 Trillion Won
[Asia Economy Reporter Choi Seoyoon] Lotte Chemical announced on the 18th that it has decided to conduct a rights offering worth approximately 1 trillion KRW to respond to the complex crises such as global inflation and supply chain instability.
The purpose of the rights offering is to raise funds for the acquisition of shares in other companies announced last October and to secure operating funds. The first subscription for existing shareholders will be held on January 19 next year, followed by a public offering on January 26.
The chemical division of Lotte Group, to which Lotte Chemical belongs, is building a value chain for key secondary battery materials such as cathode foil, copper foil, electrolyte organic solvents, and separator materials. The company plans to grow into a global leading battery materials company by expanding overseas markets for eco-friendly electric vehicle battery materials in the US, Europe, and other regions, and is accelerating related business initiatives.
In preparation for capital market tightening caused by global inflation, interest rate hikes, and global supply chain instability, the company plans to proactively diversify funding sources to maintain stable financial fundamentals.
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Meanwhile, Lotte Chemical aims to maintain a minimum operating fund of over 1 trillion KRW for financial soundness, keep a separate debt ratio within 70%, and maintain a long-term debt ratio of 65% of total borrowings. The company will adjust investment and financing plans accordingly. A Lotte Chemical official stated, "We will do our best to increase corporate value and enhance shareholder value."
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