Lotte to buy South Korea spirits maker for $386 mln

SEOUL, Jan 6 (Reuters) - South Korea's retail giant Lotte Group will acquire Doosan Corp's (000150.KS) spirits-making division for 503 billion won ($386 million), Doosan said on Tuesday, in a move that will spur Lotte's beverage business.

Lotte Chilsung Beverage (005300.KS), the country's top soft drinks brand, was picked late last month as the preferred buyer for the maker of South Korea's traditional spirit, soju, beating four other suitors.

The liquor business competes closely with unlisted Jinro Ltd. Doosan told the Korea Exchange in a filing that the sale would help it lower debt and transform into a holding company, as well as secure funding for new businesses.

It has been trying to shift its focus from food and beverage to heavy industry since it bought a domestic heavy machinery equipment maker and Bobcat, the world's top compact construction equipment firm.

Lotte Group, which runs units ranging from retail (023530.KS) and hotel to construction and biscuit making, has also been tipped as the strongest candidate to buy the country's No. 2 beer company Oriental Brewery due to its financial capability.

Sources had said Belgian brewer InBev NV INTB.BR was planning to put up for sale the South Korean beer company.

A Lotte Group spokesman said it was not considering bidding for Oriental Brewery for now, reiterating what the company said in November, as the beer company was not up for sale.

Doosan Corp's shareholders who oppose Lotte's acquisition of its business can ask the company to buy back their shares at 89,214 won each, or at a 3.4 percent discount to Tuesday's close.

Shares in Lotte gained 2.2 percent to close at 875,000 won before the disclosure, slightly outperforming the wider market's 1.8 percent rise.

($1=1303.9 won)

(Reporting by Kim Yeon-hee; Editing by Jacqueline Wong)