LCC sells 25% stake in Indonesia ethylene project

PETALING JAYA: Lotte Chemical Titan Holding Bhd’s parent company, Lotte Chemical Corp (LCC), is disposing of a 25% stake in PT Lotte Chemical Indonesia (LCI).

In a filing with Bursa Malaysia, Lotte Chemical Titan said this would lower LCC’s direct interest in the Lotte Chemical Indonesia New Ethylene Project to 24% from 49%.

Lotte Chemical Titan, in which LCC controls 75.86%, holds the remaining 51% stake in LCI.

Lotte Chemical Titan said it had received an offer from a group of companies comprising one securities firm and five special purpose corporations set up by five other securities companies, for the 25% stake in LCI for US$462.7mil.

For the financial year ended Dec 31, 2024 (FY24), Lotte Chemical Titan’s net loss widened to RM1.18bil from a net loss of RM780.29mil in the previous corresponding period, while revenue dipped to RM7.44bil from RM7.65bil a year earlier.

In a filing with the local bourse on its FY24 performance last month, Lotte Chemical Titan said it foresaw continued volatility in the global business environment in the near term.

“Geopolitical factors, including the Russia-Ukraine War, tension in the Middle East and the impact of President Trump’s policies which may influence trade policies and global relations, are expected to contribute to volatility in crude oil prices.”