] Lotte Group founder Shin Kyuk-ho’s
eldest son will sell most of his stake in key affiliates to protest the decision to set up a holding company, his representatives said on Sept. 12.Shin Dong-joo
, the former vice chairman of Tokyo-based Lotte Holdings, has decided to sell most of his shares in Lotte Shopping
, Lotte Chilsung Beverage
, Lotte Food
and Lotte Confectionery
, according to SDJ Corp., which represents the scion.
Late last month, shareholders of the four affiliates gave the green light to set up the group’s holding firm through the division and merger of the units, paving the way for its Chairman Shin Dong-bin to tighten his grip on the country‘s fifth-largest business group. The chairman is the younger brother of Shin Dong-joo.
“I express grave concerns over the latest decision made at the shareholders meetings,” Shin Dong-joo said in a press release, adding the offloading is a way of expressing his disagreement with the group’s division and merger decision.
Industry watchers say that the elder Shin may use appraisal rights given to dissenting shareholders who oppose the proposed merger, which would allow them to sell their shares at offered prices.
By Alex Lee and newswires (email@example.com