Lotte Tour Development Co., the company behind Jeju Dream Tower, has announced KRW 240 billion (US$213.6 million) rights offering to complete construction of its integrated resort.
Existing shareholders will have first priority in subscribing for this rights offering. Rights unsubscribed by the existing shareholders will be offered to the general public for subscription. Mirae Asset Daewoo, who is the sole lead manager and bookrunner, has made full underwriting commitment for the deal.
Lotte says it plans to use the money raised by rights offering to payoff mid-payments of KRW 100 billion to be paid 1 year prior to Grand Opening and KRW 50 billion to be paid 6 months prior to Grand Opening, and for interior and operation costs.
The record date for new shares allotment is set for September 3, allowing existing shareholders to subscribe to new shares from October 11 to 12.
Once completed, Jeju Dream Tower is set to be the tallest and largest landmark on Jeju island.
The Integrated Resort will reach 169 meters in height with 38 floors.
“Now that mid-payments are fully financed with rights offering, the last pieces of the puzzle in Jeju Dream Tower Integrated Resort construction are coming together,” said Mr. Ki-Byung Kim, Chairman of Lotte Tour Development Co., Ltd..
“Jeju Dream Tower Integrated Resort is currently constructed up to 20th floor. When this Integrated Resort opens by October of next year, 3,100 new jobs with highest average income in Jeju will be created.” Mr. Ki-Byung Kim also presented his vision that at “Grand Opening, Lotte Tour Development Co., Ltd. will relocate its headquarter to Jeju island and become the No.1 local company in Jeju contributing the largest amount of tax to Jeju.”