BUSINESS

LOTTE CHEMICAL TITAN TO DIVEST 49 PCT STAKE IN INDONESIAN UNIT

09/08/2019 08:16 PM

KUALA LUMPUR, Aug 9 (Bernama) -- Lotte Chemical Titan Holding Bhd (LCT) is proposing to divest 49% of its equity interest in PT Lotte Chemical Indonesia (LCI) to its major shareholder, Lotte Chemical Corporation, Korea (LCC).

The move would enable LCC to jointly fund the company’s integrated petrochemical facility (IPF), said LCT in a statement here today.

As a direct shareholder of LCI, LCC is expected to contribute about RM3.6 billion as capital injection for the construction of the IPF. 

The IPF, officially known as the Lotte Chemical Indonesia New Ethylene (LINE) project, consists of one million-tonne per year naphtha cracker and other related downstream petrochemical facilities located in Cilegon, Indonesia.

LCT president/chief executive officer Dr Lee Dong Woo said the strategic expansion will steer the company in achieving its vision to become a top-tier petrochemical company in Southeast Asia by 2024.

He said with LCC’s support via the capital contribution for the construction of the IPF, LCT will be able to have a healthy gearing ratio and remain financially resilient during the construction period.

“With LCC’s participation, the amount of debt needed by LCT to fund the LINE project is significantly reduced, and LCT will be able to share with LCC the risks associated with the LINE project. 

"This will also enable the company to pursue further growth opportunities in key markets and support ongoing operations and continue to declare dividend payments going forward,” he said.

The proposed divestment is a related party transaction and therefore will be subject to shareholders’ approval.

-- BERNAMA


BERNAMA provides up-to-date authentic and comprehensive news and information which are disseminated via BERNAMA Wires; www.bernama.com; BERNAMA TV on Astro 502, unifi TV 631 and MYTV 121 IFLIX channels and BERNAMA Radio on FM93.9 (Klang Valley), FM107.5 (Johor Bahru), FM107.9 (Kota Kinabalu) and FM100.9 (Kuching) frequencies.

Follow us on social media :
Facebook : @bernamaofficial, @bernamatv, @bernamaradio
Twitter : @bernama.com, @BernamaTV, @bernamaradio
Instagram : @bernamaofficial, @bernamatvofficial, @bernamaradioofficial
TikTok : @bernamaofficial

© 2024 BERNAMA   • Disclaimer   • Privacy Policy   • Security Policy