[Edaily Reporter Shin Ha-yeon ] LOTTE TOUR DEVELOPMENT CO., LTD(032350)announced on the 3rd, through a disclosure titled “Decision to Repurchase Convertible Bonds Prior to Maturity,” that it will repurchase 35 billion won—50% of the 70 billion won Series 8-1 convertible bonds issued in 2021—for 43.5365 billion won prior to maturity.

Following the recent controversy over the increase in the Tourism Promotion Fund tax, the company’s stock price plummeted below the convertible bond conversion price of 12,762 won and has not recovered. Consequently, investor NV8 Holdings exercised its put option on the 29th of last month to request early redemption of 50% of its held convertible bonds.

The company’s scheduled date for the early redemption purchase is August 29, 2026; however, since that date falls on a public holiday, the actual payment will be made on August 31.

The company stated that it plans to repay the early redemption amount without delay by utilizing internal cash reserves generated through the operation of Jeju Dream Tower. The company intends to repurchase the convertible bonds (approximately 2.74 million shares) and cancel them in their entirety.

A LOTTE TOUR DEVELOPMENT CO., LTD official emphasized, “This decision to cancel the bonds has fundamentally eliminated the potential overhang (a large volume of shares awaiting sale) and share dilution concerns that the market had been worried about,” adding, “It is a shareholder-friendly decision that will significantly improve our financial structure by reducing financial costs and lowering our debt-to-equity ratio.” The spokesperson added, “We will continue to pursue transparent management and robust policies to enhance shareholder value, thereby further solidifying the trust of the market and our shareholders.”