South Korean conglomerate Lotte Group has reached an agreement to sell a 79.83% stake in Lotte Card for KRW1.38 trillion ($1.16bn), The Maeil Business Newspaper has reported.
The stake will be acquired by the consortium of MBK Partners and Woori Bank.
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Lotte Card divestment:
Of the total 79.83% stake, MBK will acquire nearly 60% stake while Woori Bank will take up remaining 20%, sources familiar with development told the publication.
The deal, which has been approved by the board, will slash Lotte Group’s holding in the business to 13.95%.
Apart from card business, the South Korean conglomerate has also reached a deal to sell its 53.49% stake in Lotte Non-Life Insurance to JKL Partners.
Its shareholding in the insurer will reduce to 5% after the completion of the agreement.
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By GlobalDataLotte Group, which adopted a holding structure in October 2017, is required to divest its financial units by October this year to meet the non-financial holding structure guidelines.
According to the publication, buyers have agreed to retain all employees of Lotte Non-Life Insurance and Lotte Card after the acquisition.
