[EQUITIES] Hotel Lotte likely to seek IPO next year: Korea Investment

Published : Oct 26, 2016 - 14:06 Updated : Oct 26, 2016 - 14:06

[THE INVESTOR] Korea Investment & Securities on Oct. 26 projected that Lotte Group could seek the stalled stock listing of Hotel Lotte, the group’s de facto holding company, next year.

“Chairman Shin Dong-bin has pledged to set up a holding company to improve ownership structure in his reform plans,” said Yoon Tae-ho, analyst at the securities firm.

“Hotel Lotte’s listing would be the starting point for Lotte to break away from its Japanese origin as well as helping it secure cash for investment.”

Lotte Group Chairman Shin Dong-bin. Lee Sang-sub/The Investor

Currently, Lotte maintains 67 chains of circular shareholding across affiliates compared to the original 416.

The analyst predicted Hotel Lotte to become the holding company that controls the group’s three business pillars -- Lotte Shopping, Lotte Chemical and Lotte Confectionery.

“Considering their market value and the owner family’s shareholding, Lotte Shopping and Lotte Confectionery are likely to benefit most from Hotel Lotte’s listing,” he said.

Hotel Lotte’s planned initial public offering is valued at about US$4.5 billion.

By Lee Ji-yoon (jylee@heraldcorp.com)