S KOREA: Doosan confirms spirits sale price
Doosan Corp's divestment of its liquor business will cost acquirer Lotte Group KRW503bn (US$383.5m), according to a recent filing.
Lotte's soft drinks unit, Lotte Chilsung, confirmed late last year that it had won the bidding race for Doosan's spirits division, beating four other interested parties. At the time, details of the purchase amount were not revealed.
In a filing to the Korean Stock Exchange, however, Doosan confirmed the purchase price, adding that it would use the funds to lower its debt and transform it into a holding company, while securing funding for new businesses.
The transaction is expected to complete next month, Doosan said.
The liquor unit ranks as Korea's second largest soju producer - second to Jinro - with 13% market share.
In November, local reports suggested that Lotte Group was also considering a move for Anheuser-Busch InBev's South Korean brewer, Oriental Brewery Co. Lotte distanced itself from the speculation, however, claiming it was "not interested" in Oriental.
A-B InBev's South Korean unit is the second largest brewer in the country, behind Hite Brewery, with 40% market share.
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