Lotte completes acquisition of 76% of Kazakh confectionery co Rakhat
ALMATY. Nov 28 (Interfax) - Kazakh confectionery producer Rakhat JSC has closed a deal to sell 76% of its shares to the South Korea's Lotte Confectionery, Rakhat said in a press release.
"Lotte Confectionery, the leading confectionery company in South Korea, and Rakhat JSC, the leading confectionery producer in Kazakhstan, announced today that, further to the announcement made on July 2, 2013, Lotte Confectionery has obtained the necessary regulatory approvals and completed the acquisition of approximately 76% of the outstanding shares of Rakhat JSC," the press release says.
Lotte Confectionery intends to issue a mandatory tender offer to acquire the remaining 24% in Rakhat JSC, at such time and on terms mandated by Kazakhstan Law, according to the press release.
HSBC acted as exclusive financial advisor to the controlling shareholder group of Rakhat JSC, and Morgan Lewis acted as their legal advisor. Samil PricewaterhouseCoopers, Kim & Chang and Dentons advised Lotte Confectionery.
The shareholder capital of Rakhat JSC is valued at $157 million, or around $43.5 per share, the company said earlier.
JSC Rakhat, opened in 1942, produces over 250 confectionery products, exported both to the CIS and other countries, including Russia, Tajikistan, Germany, Mongolia, and China.
In January-September 2013 the company earned 717.034 million tenge (153.38 tenge/$1) in net profit.
Lotte Confectionery is part of Lotte Group founded in 1967 in Seoul, and specializes in the food business offering over 200 foodstuffs. In addition, its enterprises are based in Taejon and several more South Korean cities. Lotte Confectionery is the world's third largest chewing gum manufacturer. In April 2013, the company merged with its wholly owned subsidiary, Kirin Food Co. Ltd, engaged in the food business.