[EQUITIES] ‘Lotte Holdings gains momentum’
[THE INVESTOR] Lotte Holdings’ governance restructuring will strengthen its net asset value momentum, said NH Investment and Securities on Oct. 11 maintaining a “buy” recommendation and raising the target price to 70,000 won (US$61.30) from 61,000 won.
It has acquired 23.24 percent stake in Lotte Chemical from Hotel Lotte and Lotte Property and Development for 2.23 trillion won. The firm will finance the acquisition by short-term borrowings and sale of its 8.6 percent stake in Lotte Engineering and Construction to Lotte Chemical, said analyst Kim Dong-yang.
It has also decided to retire 10 percent of its own stocks promoting shareholder value, and additional reshuffle will continue to add momentum. It is likely to sell financial affiliates to satisfy requirements for holding companies while gradually floating private affiliates and merge with Hotel Lotte when it goes public, added the analyst.
By Hwang You-mee (firstname.lastname@example.org)