Lotte Chemical to sell Pakistan unit for $74.4 million

Lotte Chemical Corp. will sell its 75% stake in Lotte Chemical Pakistan Ltd. to a consortium of AsiaPak Investments and Montage Oil DMCC for 97.9 billion won ($74.4 million), according to a regulatory filing.

The sale, approved by Lotte Chemical's board, aligns with its strategy to divest non-core assets and focus on specialty chemicals and new growth areas such as battery materials and renewable energy. Lotte Chemical acquired the company in 2009 for $11.1 million.

A filing with the Pakistan Stock Exchange stated the decision was made under the Securities Act, 2015 and PSX Regulations. The PSX and Securities and Exchange Commission of Pakistan were notified of the sale on February 19, 2025.

Lotte Chemical Pakistan Ltd. reported revenue of PKR 109.299 billion in 2024, compared to PKR 81.619 billion in 2023. Profit after taxation was PKR 2.642 billion in 2024, down from PKR 5.077 billion in 2023. Total assets were valued at PKR 6.320 billion in 2024.

The sale is subject to a share purchase agreement and regulatory approvals. This divestment follows other overseas restructuring efforts by Lotte Chemical.