SEOUL, July 28 (Yonhap) — South Korea’s top soft drink maker Lotte Chilsung Beverage Co. said Thursday that it decided to absorb and merge with Lotte Liquor BG Co., its alcoholic beverage affiliate, to boost shareholder value.
Lotte Chilsung said the merger will take effect on Oct. 1, and the merger ratio will be 1:0. Lotte Chilsung holds a 100 percent stake in Lotte Liquor.
“The merger is aimed at maximizing shareholder value by improving our earnings structure and laying the foundation for sustainable growth,” Lotte Chilsung said in a statement.
Lotte Chilsung set up Lotte Liquor in 2009 when it took over the liquor business of Doosan Corp. for 503 billion won (US$447.9 million).
Lotte Chilsung reported 1.3 trillion won in sales in 2010, with Lotte Liquor’s revenue reaching 404 billion won in sales. Lotte Chilsung is a subsidiary of Lotte Group, one of the leading conglomerates in South Korea.
Shares of Lotte Chilsung rose 0.14 percent to 1.46 million won on the Seoul bourse as of 10:45 a.m.
brk@yna.co.kr
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