SEOUL — Shin Dong-joo, the elder son of Lotte Group’s founder, has decided to sell most of his stakes in Lotte Shopping and three other units of South Korea’s No. 5 conglomerate, his company said without providing the value of the sale.
Shin raised “serious concerns” about the planned merger of Lotte Shopping with the three other affiliates – Lotte Confectionery, Lotte Chilsung Beverage and Lotte Food.
Shareholders at Lotte Group affiliates last month approved a plan to set up the holding company by restructuring the conglomerate’s four listed units to boost operational transparency, a move analysts say could further enhance its chairman’s control amid a power struggle with his brother.
The conglomerate has been under pressure to resolve its complex structure and improve governance after a public feud between founding family members that began in 2015 and has pitted Lotte Group Chairman Shin Dong-bin against elder brother Shin Dong-joo.
“The splits and mergers aimed at launching a Lotte holding company would not benefit individual shareholders,” Shin Dong-joo’s statement said.
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