Lotte chairman buys 1.3 pct stake in confectionery unit
By Kim Eun-jung
SEOUL, Aug. 28 (Yonhap) -- Lotte Group Chairman Shin Dong-bin bought a 1.3 percent stake in Lotte Confectionery Co. from a construction unit after the market closing on Friday in a bid to help resolve the group's complex cross-shareholding structure, the retail giant said.
Shin bought 19,000 shares from Lotte Construction Co. to raise his stake to 6.7 percent in the confectionery company, a deal estimated at 35.8 billion won (US$30.5 million), Lotte Group said.
"(Shin) purchased shares in Lotte Confectionery to resolve part of the cross-shareholding structure to speed up the process to improve the corporate governance structure," Lotte Group said in a release.
The nation's fifth-largest conglomerate, whose businesses range from food and retail to construction and chemicals, has been making efforts to improve its corporate transparency following a barrage of criticism over its complex cross-shareholding structure.
Lotte had been embroiled in a bitter family fight over control of the sprawling business empire, which has reignited sentiment against family-controlled conglomerates, known as chaebol here, and prompted an all-out government probe into the group.
Anti-chaebol sentiment has also been building up, which for Lotte translates into a possible boycott of its services and products by consumers, a substantial threat for the heavily retail-focused company.
On Wednesday, Lotte launched a task force on reforming its governance structure, vowing to improve transparency in the management.
ejkim@yna.co.kr
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