The Lotte Group has unveiled a major restructuring, addressing growing criticism of its complex corporate structure, a move it said it will enhance shareholder value.
The group said its four listed units – Lotte Shopping, Lotte Confectionery, Lotte Chilsung Beverage, and Lotte Food – will now be split up into an investment unit and a business unit each.
The four investment units will then be merged to form a single holding company (as-yet unnamed) that will oversee the business units. The holding company, which will be headquartered at the Lotte World Tower in Seoul, will manage the various brand licenses of the group and oversee management of the subsidiaries.
Lotte said the changes will reduce cross-shareholdings in the group to just 18, from 67 currently. It added that the changes are “expected to enhance the company’s transparency. The company value and shares value, which have been underestimated because of the opaque governance structure, are expected to get re-evaluated”.
Carlsberg has announced the departure of its chief financial officer (CFO), Heine Dalsgaard, after six years in the position. In a statement, Carlsberg said that Dalsgaard was resigning from the post to take up the role of CFO at a private equity-backed company in a different industry.
Kellogg will split into three independent companies to focus on the snack business, Reuters reported Tuesday. The snacking portfolio will comprise the main business, while the North America cereal unit and the plant-based business will be spun off. The company is also considering a sale of the plant-based business.
The snacks giant says the acquisition will help build on its commitment to “lead the future of snacking” in key geographies worldwide. Once the transaction is completed, Mondelēz will continue to operate the Clif Bar business from its headquarters in Emeryville, California. The snack giant will also continue to manufacture Clif Bars’ products, which include Clif Bar, Luna and Clif Kid, at its facilities in Idaho and Indiana.