Rakhat confectionery plant sells 76% to South Korean Lotte 09 июля 2013, 18:51
- Found a bug?
- Select it and press Ctrl + Enter
Kazakhstan confectionery plant Rakhat intends to sell 76 percent of its common shares to South Korean LOTTE Confectionery, Tengrinews.kz reports citing the official website of Kazakhstan Stock Exchange (KASE).
The deal is expected to be closed in the second half of 2013. This contract will facilitate further development of the mutually beneficial economic and cultural relations between Kazakhstan and South Korea.
“We are very happy to sign such a significant deal. Joining our company with a successful world-famous global group like LOTTE is a sign of trust to our brand and our employees who made it. It is also a confirmation of the huge potential of Kazakhstan's economy and the country's successful development over the last twenty years under the leadership of our President,” Rakhat President Anatoly Popelyushko said.
The cost of the deal with Rakhat is estimated at around $157 million, which is around $43.5 per share. There are 3.6 million shares in circulation so the premium makes 30 percent to the price per share at KASE as of July 1, 2013.
After the deal is closed and all necessary approvals are received LOTTE Confectionery plans to offer the minority shareholders of Rakhat to purchase the remaining 24 percent from them on the terms and conditions provided by Kazakhstan legislation.
Rakhat company was established in 1942. It produces 250 types of confectionery, including chocolate, sweets, cookies and waffles. Rakhat is listed at the Kazakhstan Stock Exchange (KASE). The market price of the company’s stock stands at 18 billion tenge ($119 million).
The plans of LOTTE Confectionery to purchase the Kazakhstan plant were unveiled in June 2013.
By Azhar Ashirova