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[Alpha Biz=(Chicago) Reporter Kim Jisun] Taekwang Industrial, the second-largest shareholder of Lotte Home Shopping (corporate name Woori Home Shopping), expressed opposition to Lotte Home Shopping's plan to purchase land and its headquarters building in Yangpyeong-dong, Yeongdeungpo-gu, Seoul, on the 23rd.
Earlier, Lotte Home Shopping held a board meeting on the 27th of last month and decided to purchase the headquarters building and land in Yangpyeong-dong for 203.9 billion won. Lotte Holdings and Lotte Well Food own 64.6% and 35.4% of the real estate in question, respectively.
In response, Taekwang Industrial stressed, "Lotte Homeshopping does not need to buy an office building in use without any inconvenience, claiming that it is in a serious crisis, including a 116% drop in sales and an 88% drop in operating profit in the first quarter of this year."
Taekwang Industrial and its affiliates are the second-largest shareholders with a 44.98% stake in Lotte Home Shopping.
"As a result, Lotte Home Shopping management pushing ahead with the real estate purchase deal may constitute a legal breach of trust," Taekwang Industrial said, stressing that it will proceed with various measures, including various legal procedures.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
