PETALING JAYA: LOTTE Chemical Louisiana LLC (LCLA), a full subsidiary of LOTTE Chemical USA Corp (LC USA), is planning to undertake a corporate restructuring involving a capital contribution in LCLA by two special purpose corporations (SPCs) via a price return swap contract.
LC USA is an associate company of Main Market-listed Lotte Chemical Titan Holding Bhd
(LCTH).
The two SPCs have also expressed interest to acquire a total of 40% of LC USA’s equity interest, with each of them holding a 20% stake in LCLA, via a capital contribution of US$477mil.
The proceeds will be used to repay LC USA’s loan and to finance the operating expenses of LCLA.
The transaction will result in LC USA’s equity interest in LCLA to reduce from 100% to 60% and consequently, LCTH’s effective interest in LCLA to reduce from 40% to 24%.
