KUALA LUMPUR: Lotte Chemical Titan Holding Bhd
(Lotte Chemical) announced that its related company, Lotte Chemical USA Corporation (LC USA) has entered into a securities purchase agreement with Eagle US 2 LLC (Eagle US) to transfer a further 3.23 per cent of its equity interest in LACC LLC to Eagle US for US$89.10 million (US$1=RM4.19).
LACC LLC is a joint-venture between Lotte Chemical Corporation’s subsidiary, LC USA, and Eagle US.
Lotte Chemical said this followed previous announcements in relation to LC USA entering into a securities purchase agreement with Eagle US to transfer at least 34.79 per cent equity interest in LACC LLC to Eagle US and the arbitration proceedings commenced by LC USA.
In a filing to Bursa Malaysia today, the company said the transfer is arising from Eagle US exercising its call option which allows the company to increase its equity interest in LACC LLC to 50 per cent.
"Upon completion of the transfer, Eagle US’ shareholding in LACC LLC will be increased to 50 per cent with LC USA holding the remaining shareholding of 50 per cent,” Lotte Chemical said.
The group shared that LC USA is expected to generate a one-off gain on disposal after tax of approximately US$27 million from the transfer.
"The group's 40 per cent share of this gain is approximately US$11 million for the financial year ending Dec 31, 2022. The transfer will reduce LC USA's interest in LACC LLC’s future financial performance and consequently, the group's share of profit and loss in LC USA,” it added. - Bernama
(Lotte Chemical) announced that its related company, Lotte Chemical USA Corporation (LC USA) has entered into a securities purchase agreement with Eagle US 2 LLC (Eagle US) to transfer a further 3.23 per cent of its equity interest in LACC LLC to Eagle US for US$89.10 million (US$1=RM4.19).LACC LLC is a joint-venture between Lotte Chemical Corporation’s subsidiary, LC USA, and Eagle US.
Lotte Chemical said this followed previous announcements in relation to LC USA entering into a securities purchase agreement with Eagle US to transfer at least 34.79 per cent equity interest in LACC LLC to Eagle US and the arbitration proceedings commenced by LC USA.
In a filing to Bursa Malaysia today, the company said the transfer is arising from Eagle US exercising its call option which allows the company to increase its equity interest in LACC LLC to 50 per cent.
"Upon completion of the transfer, Eagle US’ shareholding in LACC LLC will be increased to 50 per cent with LC USA holding the remaining shareholding of 50 per cent,” Lotte Chemical said.
The group shared that LC USA is expected to generate a one-off gain on disposal after tax of approximately US$27 million from the transfer.
"The group's 40 per cent share of this gain is approximately US$11 million for the financial year ending Dec 31, 2022. The transfer will reduce LC USA's interest in LACC LLC’s future financial performance and consequently, the group's share of profit and loss in LC USA,” it added. - Bernama
Already a subscriber? Log in
Get 20% OFF The Star Digital Access
Cancel anytime. Ad-free. Unlimited access with perks.
