[Gimeunji financial newspaper reporter Korea] Lotte switch to a holding company system. Lotte, Lotte Shopping, Lotte Chilsung, Lotte Food is open for 26 days each board has resolved to spin-off and merger split for the holding company transition. Lotte is that each division of the four companies in the investment sector and the business sector, and the transition to a holding company system to merge the respective investments around the Lotte Group's womb plan.
The Board of Directors has implemented a governance dimension to the promised improvement, which contains clear and operating effectively and the Group corporate social responsibility and the role of Lotte will do my willingness.
Lotte Group Chairman Shin Dongbin was published in August, "it will completely eliminate cross-shareholding to switch the group in the mid- to long-term holding company" 2015. As announced in October last year after the inside management and innovation "to switch to a holding company system in the near future, most completely eliminate cross-shareholding, and I become a transparent company organizes complex structure" has said the bar again.
Lotte Confectionery division of the company, including four companies were chosen spin-off method. Spin-off is a method that has split the shares of the new entity as existing (split) company shareholders ownership. In this case, the Lotte Group's womb as the surviving corporation and investment, in the case of the remaining three companies Division is a surviving corporation. Year of Lotte Confectionery invested sector merged the new investment of the remaining three companies to launch a "Lotte Holdings Co., Ltd."
The value of each investment in four companies has calculated the merger ratio to evaluate a fundamental value in accordance with the relevant laws prescribed manner because it can not estimate when the market segmentation, the ratio of external rating agencies had estimated.
Lotte Holdings Co., Ltd. is planning to perform the roles of subsidiary management evaluation and support services, and brand licensing management. The location is 300 (Lotte World Tower) in Songpa-gu, Seoul Olympics, the main cutting edge work of the company is expected to take place later.
Four companies are expected to be there and have a mutual stake in the subsidiary complicated cross-shareholding ring through the holding company transition eliminated substantially. Lotte current is turned down to 67 to sequentially eliminate the circular investment ring reached the 416 gae, 2015, owned split ring merger accomplished when circulation is reduced 18 dogs.
When the circular investment rings are mostly lost, it says simplicity governance managerial transparency is improved. And shareholder-oriented management culture is strengthened, whilst that due to the opaque governance expect a positive reevaluation of which was also the undervalued company value and shareholder value markets made Lotte sides said.
Lotte side through another Investment (Holding) and the separation of the business, we say that the business risks of the investment risks associated with separating explained that to ensure the stability of management. Accompanied by bad management of the parent company due to deterioration of the subsidiaries can be prevented.
It is also increased business reorganization ease. Since the split between the business is sold, the simplicity of the shareholding structure is maintained when the argument is confined to the impact of the change in business structure holding company or certain subsidiaries facilitates decision-making.
Four companies including Lotte Confectionery will decide whether to approve the eight companies this segmentation merger at a general shareholders' meeting scheduled for May 29. The October 1 is coming when the general shareholders' meeting approved the split merger date. Since each company is listed and re-listed after the change review process is expected to resume trading on October 30.
The current holding company system is a holding company - and allow only vertical shareholding structure of the Company grandchildren - a subsidiary. Lotte Group is planning to within the grace period, according to the Fair Trade Act, reviewed the various ways to comply with regulations such as eliminating residual cross-shareholding.
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