LOTTE CHEMICAL Completes Simple Physical Split; Plans to Cancel 21,264 Treasury Shares from Appraisal Rights Exercise

LOTTE CHEMICAL completed a simple physical split on June 2, 2026, establishing a new entity. The existing share structure remains unchanged, with the surviving company holding 100% of the new entity's shares.
During the split, 21,264 shares were tendered under appraisal rights at an average price of KRW 81,130, to be repurchased with internal cash. The acquired treasury shares are scheduled to be canceled within one year, representing only ~0.05% of outstanding shares, with negligible impact on shareholder value.
Based on the split financial statements (Dec 31, 2025), the surviving company retains total assets of approximately KRW 15.84 trillion, total liabilities of KRW 5.03 trillion, and equity of KRW 10.81 trillion. The new entity assumes about KRW 1.94 trillion in assets and liabilities, improving the surviving company's capital structure.
[AI Summary]This split under the Special Act on Business Vitalization is a strategic separation of business segments without dilution, aiming to enhance operational efficiency and unlock potential value. The minor share repurchase and cancellation plan are neutral for shareholder returns, with limited short-term stock price impact.