Lotte Chemical Korea has finalized a deal to divest its entire stake in Lotte Chemical Pakistan Limited (LCPL). The sale, announced on February 19, 2025, transfers the company’s 75.01% ownership to AsiaPak Investments Limited and Montage Oil DMCC. This move is part of Lotte Chemical Korea’s business portfolio transformation strategy.
Share Purchase Agreement Details
In a notice to the Pakistan Stock Exchange (PSX), LCPL confirmed that the Share Purchase Agreement (SPA) involves the sale of 1,135,860,105 shares. These shares account for 75.01% of the company’s issued and paid-up capital. The agreement remains subject to regulatory and corporate approvals, along with the fulfillment of other closing conditions.
AsiaPak Investments and Montage Oil submitted their bid for LCPL last week. AsiaPak is a private investment firm with operations in Pakistan and Hong Kong, while Montage Oil is a Middle Eastern oil and gas company.
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Reasons Behind the Sale
Lotte Chemical Korea decided to sell its Pakistani unit due to a mismatch with its long-term strategic vision. The company has been shifting its focus toward aligning its operations with future business goals.
The divestment follows previous unsuccessful sale attempts. In 2023, Pakistan-based petrochemical firm Novatex withdrew its offer to purchase Lotte Chemical Pakistan’s 75% stake. A year later, a unit of conglomerate Lucky Core Industries also canceled its deal, which had been valued at approximately 192.4 billion won ($132.85 million).
Market Capitalization and Future Prospects
Lotte Chemical Pakistan currently holds a market capitalization of 32.1 billion rupees (around $115 million). The company has faced challenges finding a buyer due to economic and operational uncertainties. However, the latest agreement with AsiaPak and Montage Oil offers potential for stability and growth under new ownership.
This sale marks a significant shift in Lotte Chemical Korea’s global operations and highlights the evolving landscape of Pakistan’s petrochemical sector.
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