Lotte Aluminum Passes Shareholders' Meeting for Anode Foil Business Spin-off

Lotte Aluminum announced on the 23rd that the agenda item "Approval of the Physical Division Plan," which involves physically dividing certain business sectors, was passed with a 77% approval rate at the regular shareholders' meeting.

At the end of last year, Lotte Aluminum disclosed plans to split its anode foil and general foil business divisions to establish Lotte Aluminum BM Co., Ltd., and to split its can, flexible packaging, corrugated cardboard, household goods, and PET bottle business divisions to establish Lotte Aluminum PM Co., Ltd. as newly founded companies. The remaining business sectors, excluding those subject to the division, will be managed by the continuing company, Lotte Aluminum Co., Ltd.

Additionally, the shareholder proposal put forward by Shin Dong-joo, former Vice Chairman of Japan Lotte Holdings (Chairman of SDJ Corporation), citing concerns over shareholder value dilution due to the physical division, was rejected on the same day.

Former Vice Chairman Shin argued that the physical division could harm the shareholder value of existing shareholders and requested that the proportional interests of shareholders be included in the directors' fiduciary duties under the articles of incorporation. Lotte Aluminum accepted his shareholder proposal and submitted the "Amendment of Articles of Incorporation" as an agenda item for this shareholders' meeting.

Regarding the decision on the physical division, former Vice Chairman Shin issued a statement expressing "deep regret over Lotte Aluminum's decision to proceed with the physical division despite concerns about the dilution of existing shareholders' value."

Lotte Aluminum stated, "The newly established companies can enhance corporate value by operating specialized businesses, which will also benefit the shareholders of the parent company," adding, "The new companies plan to focus on their core businesses to secure new future growth engines and strengthen business competitiveness."

This content was produced with the assistance of AI translation services.