March 24, 2017 / 8:56 AM / 3 years ago

UPDATE 1-S.Korea's Lotte Shopping to inject $192 million, provide collateral for China business

(Adds quote from Lotte official, background)

SEOUL, March 24 (Reuters) - South Korea’s Lotte Shopping Co Ltd said on Friday it will inject $192 million into a Hong Kong subsidiary in May via a rights issue to infuse funds into its China operations.

The retailer said in a regulatory filing that the injection is to raise funds for its hypermarket and supermarket business in China “for smooth business.”

Lotte Shopping also said in a separate filing that it is providing collateral for a separate China affiliate to be able to borrow up to 792 million yuan ($114.98 million) from three banks sometime in March.

This month, Chinese authorities closed dozens of retail stores of South Korea’s Lotte Group following inspections, ramping up pressure on the conglomerate amid a diplomatic standoff.

“We are securing operational funds for Lotte Mart’s China business such as for buying products and maintaining stores, as revenue has been reduced due to store closures,” a Lotte Shopping official said.

Out of Lotte’s 99 hypermarkets in China, 67 had been closed by Chinese authorities as of Thursday. ($1 = 6.8882 Chinese yuan renminbi) (Reporting by Joyce Lee; Editing by Kim Coghill)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below