KUALA LUMPUR:Lotte Chemical Titan Holding Bhd (LCT) has announced that the Eagle US2 LLC’s (Eagle US) shareholding in LACC LCC -- a joint venture of Lotte Chemical Corporation’s subsidiary, Lotte Chemical USA Corp (LC USA) and Eagle US -- will remain at 46.77 per cent.

       In a statement to Bursa Malaysia today, the group said the arbitration proceeding with regards to the purchase price formula on LC USA’s transfer of shares in LACC LLC to Eagle US was completed on Nov 23.

       Previously, in the fourth quarter of 2019, LCT announced that LC USA had entered into a securities purchase agreement to transfer at least 34.79 per cent equity interest in LACC LLC to Eagle US.

       LACC is a joint venture between LC USA and Eagle US for the development of the US Ethane Cracker Plant, in which LC USA owned 88 per cent equity interest and Eagle US -- an entity within Westlake Chemical Corporation -- owned the remaining 12 per cent equity interest.

       Upon completion of the transfer, Eagle US’ shareholding in LACC increased to 46.77 per cent, with LC USA holding the remaining 53.23 per cent.

       "There will be no further changes to the equity interest which Eagle US is entitled to receive pursuant to the closing of the transfer.

       "As such, Eagle US’s shareholding in LACC LCC is confirmed to remain at 46.77 per cent, with LC USA holding the remaining shareholding of 53.23 per cent,” it said.

       Following the transfer, LC USA will recognise a revenue of US$18.4 million (US$1=RM4.22) and a gain on disposal before tax of approximately US$60.5 million.

       "This transaction will be subject to a tax of about US$17.1 million, resulting in an estimated net gain of US$61.8 million, and the group's 40 per cent share of the above is approximately US$24.7 million,” it said.

       At 2.50 pm, the group's shares rose one sen at RM2.29 with 241,900 units transacted. - Bernama