Lotte Chemical Enhances Financial Soundness... Stepwise Execution of 1.4 Trillion KRW Fundraising
Secured Approximately 1.4 Trillion KRW Funding Through Stock Price Swap Agreement with Major Domestic Securities Firms
Lotte Chemical announced on the 24th that it will raise approximately 1.4 trillion KRW in funds based on the equity of its overseas subsidiaries and enhance its financial soundness.
By utilizing 40% of the paid-in capital increase equity of its US EG production subsidiary LCLA (LOTTE Chemical Louisiana LLC), it plans to raise about 660 billion KRW within this year, and the secured funds will be used to reduce borrowings.
Additionally, it plans to raise about 700 billion KRW next year by utilizing the equity of Indonesia LCI (PT Lotte Chemical Indonesia). LCI was established in 2016 to build a petrochemical plant with an ethylene capacity of 1 million tons and plans to start commercial production next year.
With this equity sale, Lotte Chemical's overseas subsidiary LC USA's stake in LCLA will change from 100% to about 60%.
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Lotte Chemical Basic Chemicals plans to strengthen its role as a cash cow through 'Asset Light' and maximizing operational efficiency, and reduce its portfolio share to below 30% by 2030.
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