Ailing Lotte Group founder and honorary chairman Shin Kyuk-ho’s entire 3.44 percent stake in Daelim Industrial Co. will be sold off in a block sale to help him repay money he owes to his eldest son.
According to market sources on Tuesday, Shin assigned NH Investment & Securities Co. to tap demand for his holdings of 1,217,614 shares in Daelim Industrial in a block deal. The price would be set between 77,406 won and 75,012 won apiece, 3 to 6 percent discounted from Daelim Industrial’s closing price of 79,800 won on Tuesday. The sale would help him secure as much as 91.3 billion won.
The news has been dragging down shares of Daelim Industrial. The stock lost 3.51 percent and closed Wednesday at 77,000 won.
Shin decided to shed the stake to repay more than 200 billion won ($179 million) owed to his eldest son Shin Dong-joo according to an official from Lotte Group. The elder Shin was slapped with inheritance tax last year. He paid the tax through loans backed by his son’s holding in Lotte Shopping to meet the short deadline.
By Lee Han-na and Choi Mira
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]