Lotte Group, a leading conglomerate in South Korea, is embarking on a strategic business restructuring for the year. As part of this initiative, the conglomerate has decided to divest the ATM business of Korea Seven, formerly known as Lotte PSNet, which oversees the operations of the nation’s 7-Eleven convenience stores.
According to Lotte Corp., the group has appointed accounting firm Samjeong KPMG to oversee the sale process and identify a suitable company to acquire Korea Seven’s ATM division. The projected sales price is estimated to range between 40 billion and 50 billion won ($30 million-$38 million), as per industry sources.
This move comes after Lotte’s previous attempt to sell Lotte PSNet in 2017, which was unsuccessful. Two years later, Korea Seven merged with Lotte PSNet to enhance synergy between its convenience store and ATM operations.
In addition to this divestment, Lotte is exploring various options to enhance its business, including potential collaboration with Kohlberg Kravis Roberts & Co., a prominent private equity fund operator based in the United States.
Lotte has been actively divesting businesses from its portfolio, including Lotteria in Japan, TGI Fridays, Vietnamese confectionery manufacturer Bibica, Lotte Aluminum’s boiler business, Lotte Card, and Lotte Insurance.
At the same time, the conglomerate is focusing on nurturing new growth opportunities, particularly in Lotte Biologics, Lotte Healthcare, and Lotte Data Communication. As part of this strategy, Lotte Group Chairman Shin Dong-bin’s eldest son, Shin Yoo-yeol, was appointed to lead a newly established division called the Future Strategy Office during the group’s year-end reshuffle in December. Shin also holds an executive position in Lotte Biologics’ Global Strategy Office.
During Lotte’s Value Creation Meeting held on Jan. 18, Chairman Shin Dong-bin emphasized the need to enhance execution capabilities in a volatile business environment to the executives.
In a recent interview with Japanese media, Chairman Shin highlighted a shift in business policy, stating that the group will divest from underperforming businesses and pursue necessary acquisitions. This strategic approach reflects Lotte Group’s commitment to adapt to changing market dynamics and drive sustainable growth.
(Source: Korea JoongAng Daily | The Korea Herald | Pulse News Korea)
