KUALA LUMPUR: Lotte Chemical Titan Holding Bhd
(LCTH) has entered into a US$25.3mil (RM103.7mil) related party transaction involving the sale of naphtha to its Indonesian subsidiary to ensure feedstock continuity amid geopolitical disruptions.
In a filing with Bursa Malaysia, the group said its wholly-owned unit Lotte Chemical Titan (M) Sdn Bhd (LCTM) signed a contract with PT Lotte Chemical Indonesia (LCI) for the sale of naphtha. LCI is 51%-owned by LCTH.
“Following the outbreak of the war involving US-Israel and Iran on Feb 28, 026 and the closure of the Strait of Hormuz, LCTM has entered into the transaction with LCI to mitigate operational risk and ensure feedstock continuity,” LCTH said, adding that the contract value is based on prevailing market prices.
The transaction represents about 1.1% of LCTH’s audited net assets of RM9.42bil as at end-2024. When aggregated with previous related party transactions over the past 12 months, the percentage ratio rises marginally to 1.102%.
