Thursday, July 18, 2024
HomeLatest NewsBusinessLotte Chemical to Sell Pakistani Unit for $156 Million

Lotte Chemical to Sell Pakistani Unit for $156 Million

Lotte Chemical to sell 75.01% in Pakistani affiliate for higher-value.

Pakistani chemical business Lucky Core Industries will acquire the entire 75.01 percent ownership in Lotte Chemical Pakistan Limited (PSX: LOTCHEM), a division that primarily manufactures purified terephthalic acid (PTA).

The South Korean corporation will consolidate its operations focusing on cutting-edge materials and ecologically responsible goods by selling the 192.4 billion won ($156 million) stake to a local chemical company.

The proceeds from the sale are predicting to strengthen the company’s advanced materials division, improve the development of environmentally friendly synthetic chemicals, and modernize the current chemical products used as plastics’ feedstock.

Due to the sale of the Pakistani unit, Lotte Chemical will no longer sell PTA. In 2020, Ulsan, South Korea’s domestic PTA production line shut down.

Even if Novatex Limited changed its mind last week about buying 75% of the Pakistani subsidiary of the South Korean corporation, the sale is still proceeding as per schedule. LOTTE Chemical Pakistan’s 1.13 billion voting shares were the subject of initial interest from Novatex Limited.

Lotte’s stock was up Rs. 0.65 or 2.36 percent Monday, trading at Rs. 28.2 on the stock exchange, with 2.59 million shares changing hands.

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