January 16, 2023 (MLN): The Lotte Chemical Pakistan Limited (LOTCHEM) on Monday declared that it is selling its subsidiary in Pakistan to a local chemical company for 192.4 billion won (US$156 million) as part of efforts to streamline its business with a focus on advanced materials and eco-friendly products.
Earlier today the company issued a notice to PSX stated, "The board of the Lotte Chemical Corporation, South Korea (LCC Korea), the majority 75.01% shareholder of LOTCHEM has approved and authorized the sale of all of the company's shares held by LCC Korea that is 75.01% for the purpose of the optimization of LCC Korea's business portfolio."
"Lucky Core Industries, a Pakistani chemical company, will take over the entire 75.01% stake in LOTCHEM, a unit that mainly engages in the production of purified terephthalic acid (PTA)", as per international news agency reported.
The report further noted, "A Share Purchase Agreement (SPA) will be executed on such terms and conditions as may be specified, under the share purchase agreement." and added that the consummation of the Proposed Divestment will be subject to the procurement of all applicable regulatory and corporate approvals as may be required.
PTA is widely used to make Polyethylene terephthalate (PET) bottles and other polymer products, such as fibers, resins and thin films.
Furthermore, LOTCHEM will use the funds from the sale to bolster its advanced materials segment and make further inroads into sustainable chemical products, while upgrading the existing petrochemical products used as feedstock for plastics.
The sale of the Pakistani unit means that LOTCHEM will no longer engage in the PTA production. It shut down the domestic PTA production line in Ulsan, 307 kilometers southeast, in 2020, it noted.
