Lotte Group chairman buys 2.1 pct stake in confectionery affiliate

Lotte Group Chairman Shin Dong-bin bought a 2.1 percent stake in Lotte Confectionery Co. on Friday, emerging as the second-largest shareholder in one of the group's major affiliates.

Shin spent around 69 billion won (US$60.5 million) in buying a total of 30,000 shares in Lotte Confectionery, the company said in a regulatory filing. The purchase was made during after-hour trading.

The purchase brought his stake in Lotte Confectionery to 8.78 percent, which exceeded a 6.83 percent stake owned by his father and group founder Shin Kyuk-ho. 

This is a follow up measure after Shin picked up a 1.9 percent stake in Lotte Confectionery in August.

The move comes as Shin and his elder brother Dong-joo have been involved in a succession feud over the group whose business portfolio ranges from food to retail, mostly based in South Korea and Japan.

The latest share purchase is interpreted as an effort to strengthen his grip on the company that stands at a critical position in the group's cross-sharing structure. (Yonhap)