7-Eleven convenience store in Busan (123rf)
As part of its business restructuring aims for this year, Lotte Group has decided to sell the ATM business of Korea Seven, formerly known as Lotte PSNet, which oversees the operation of the nation’s 7-Eleven convenience stores.
According to Lotte Corp. on Wednesday, the group recently appointed accounting firm Samjeong KPMG to oversee the sale process and identify a suitable company to acquire Korea Seven's ATM division.
Korea Seven is a distribution company that manages the 7-Eleven convenience store chain. The projected sales price is estimated to range between 40 billion and 50 billion won ($30 million-$38 million), according to industry sources.
In 2017, Lotte previously failed in its attempt to sell Lotte PSNet, which operated as a subsidiary of Korea Seven. Two years later, Korea Seven merged with Lotte PSNet to enhance the synergy between its convenience store and ATM operations.
Meanwhile, Lotte said it is currently "exploring various options" regarding future efforts to enhance business, which may involve collaboration with Kohlberg Kravis Roberts & Co., a prominent private equity fund operator headquartered in the United States.
Lotte has divested businesses from its past portfolio, including Lotteria in Japan, family restaurant TGI Fridays, Vietnamese confectionery manufacturer Bibica, Lotte Aluminum's boiler business, Lotte Card and Lotte Insurance.
Meanwhile, the industry views that the group is actively nurturing new growth opportunities centered on Lotte Biologics, Lotte Healthcare and Lotte Data Communication. As evidence of this strategy, Lotte Group Chairman Shin Dong-bin's eldest son, Shin Yoo-yeol, was appointed to lead a newly established division called the Future Strategy Office during the group's year-end reshuffle in December. Shin also holds an executive position in Lotte Biologics' Global Strategy Office.
During Lotte's Value Creation Meeting held on Jan. 18, Shin Dong-bin underscored the need to enhance execution capabilities in a volatile business environment to the executives.
In a recent interview with Japanese media, the chairman emphasized a shift in business policy, stating that the group will divest from underperforming businesses and pursue necessary acquisitions.
This marks the first attempt to sell a division following Shin's remarks.
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