Lotte Shopping to acquire 72.3% stake in Times

Lotte Shopping Company Limited, a Korea-based department store chain operator, has agreed to acquire a 72.3% stake in Times, Ltd., a Hong Kong-based operator of hypermarkets and supermarkets, from Kenneth Fang and his family. The transaction is valued at approximately $650 million.

Following the completion of the transaction, Lotte Shopping will make an offer to acquire the remaining stake in Times.

Rumor (October 11, 2009):

According to The Wall Street Journal, Lotte Shopping is one of the possible bidders to acquire a 72.3% stake in Times from Kenneth Fang and his family. The transaction is valued at approximately HKD2,940 million ($379.36 million).

Reportedly, Wumart Stores, Inc. and Lianhua Supermarket Holdings Co., Ltd. are also in the race to acquire a majority stake in Times.

HSBC Holdings Plc is acting as financial advisor to Times. Nomura Holdings, Inc. is acting as financial advisor to Lotte Shopping.

Deal Value (US$ Million) 650
Deal Type                Acquisition
Sub-Category             Majority Acquisition
Deal Status              Announced: 2009-10-19

Deal Participants

Target (Company)   Times, Ltd.
Acquirer (Company) Lotte Shopping Company Limited

Deal Rationale

The transaction would enable Lotte Shopping to expand its footprints in Chinese market.

% Acquisition 72.3%

Related terms: acquisition, family, hong kong, korea, market