The Board of Directors of Lotte Chemical Corporation (LCC Korea), the majority shareholder of Lotte Chemical Pakistan Limited (LCPL), has entered into a Share Purchase Agreement (SPA) to sell the entire stake in the Pakistani subsidiary to AsiaPak Investments Limited and Montage Oil DMCC.
LCPL disclosed the development in its notice to the Pakistan Stock Exchange (PSX) on Thursday.
“We would like to inform you that the Board of Directors of the Lotte Chemical Corporation (LCC Korea), the majority (75.01%) shareholder of Lotte Chemical Pakistan Limited has entered into SPA dated 19 February, 2025 with AsiaPak Investments Limited and Montage Oil DMCC for the sale of all of the company’s shares held by LCC Korea (i.e.1,135,860,105 shares constituting approximately 75.01% of the issued and paid-up capital of the company) as part of LCC Korea’s business portfolio transformation,” read the notice.
The company stated that the consummation of the divestment shall remain subject to procurement of all applicable regulatory and corporate approvals (as may be required) and fulfilment of the requisite closing conditions.
Last week, AsiaPak Investments, a private investment firm with operational assets in Pakistan and Hong Kong, and Middle Eastern oil and gas company Montage Oil bid for a 75.01% stake in Lotte Chemical Pakistan
Lotte Chemical Corp, the Korean parent company, had put up the Pakistani unit for sale, citing a mismatch with its long-term vision. But two previous deals for the company, which currently has a market capitalization of 32.1 billion rupees (about $115 million), have fallen through. First, Pakistan-based petrochemical firm Novatex pulled its offer to buy the 75% stake in 2023 and last year a unit of conglomerate Lucky Core Industries ended its deal to buy the stake for about 192.4 billion won ($132.85 million).