Hi-Mart takeover is a positive
Lotte Shopping’s acquisition of Hi-Mart is positive for both top-line and bottom-line growth. Profit gains from Hi-Mart will outweigh interest expense increases to boost Lotte Shopping’s EPS by more than 3%, let alone operational synergies, which should begin to materialize in 2H13. With Hi-Mart under its roof, Lotte Shopping’s home appliance margins will gradually rise to help lift profits. Furthermore, Lotte Shopping and Hi-Mart will join
forces for better outcomes in overseas markets including Indonesia and Vietnam.