Lotte Chemical sells entire Pakistan unit amid restructuring

Lotte Chemical said Thursday it has sold its entire stake in a Pakistani subsidiary for 98 billion won ($67 million) as part of its ongoing business reorganization. The company sold its 75.01 percent stake in Lotte Chemical Pakistan Ltd., a producer of purified terephthalic acid, to PTA Global Holdings, it said in a press release. PTA Global Holdings is a special purpose vehicle (SPV) established by AsiaPak Investments Ltd., a Pakistani private equity fund, and UAE-based petrochemical trading firm Montage Commodities FZCO. Lotte Chemical, the chemical arm of South Korea's retail conglomerate Lotte Group, said it has secured a total of 127.6 billion won from the subsidiary, including dividend income over the past three years. The divestment is part of the company's efforts to streamline its business portfolio, enhance competitiveness in line with government-led industrial restructuring and strengthen its financial soundness by selling non-core assets. Lotte Chemical produces basic materials such as polyethylene and ethylene, used in plastics and industrial chemicals across the construction