April 16, 2024

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After the post-IPO overhang issue has been solved its values will expand as it acquires royalty rights, and its major subsidiaries go public and bring in cash from selling a financial affiliate, forecast analyst Choi Nam-gon.

It is required to solve cross-shareholding and mutual investment issues within six months and in two years meet the requirements for stake in subsidiaries and offloading stake in a financial affiliate, explained the analyst. 

Even after transforming to a holding company system, group Chairman Shin Dong-bin has not secured a direct control over Hotel Lotte and the chemical unit, so will seek an IPO for the hotel unit, split-off of its investment and operation departments, and merger of the investment division with Lotte Corp., according to Choi.

By Hwang You-mee (glamazon@heraldcorp.com) Lotte Corp.’s corporate value will rise, said Yuanta Securities on Dec. 11, raising the target price to 80,000 won (US$73.21) from 70,000 won.