In the first part of its exit campaign from China following retaliatory bombardment last year, South Korea’s Lotte Shopping Co. is handing over 21 grocery stores in Beijing to Chinese retailer Wumei for 248.5 billion won ($230.1 million) and working to sell outlets in other parts of the mainland.

The company in a regulatory filing on Thursday said that its subsidiary Lotte Shopping Holdings Hong Kong will sell 87.38 percent of its stake in its Chinese unit in charge of 10 Lotte Mart stores and 11 Lotte Supermarket outlets in Beijing to the Chinese buyer while retaining 5 percent stake to ensure a smooth transition.

Wumei is one of China’s largest retail chains with some 900 stores across the country. Its annual sales near 8.7 trillion won, according to Lotte Shopping.

“The sale price matches the value of the Chinese unit based on the appraisals done by asset evaluation specialists,” the company said. “Lotte Shopping will maintain 5 percent stake in the Chinese unit after sales (to Wumei) to keep a strategic relationship and smooth transition.”

The Korean retailer has been seeking buyers for its stores in China since September last year as it received a direct blow after its parent group yielded its golf course site to host U.S. anti-missile system called THAAD. Eighty-seven of its total 99 stores in China were suspended last year and the sales for remaining stores had plunged by more than 80 percent.

The THAAD setback is estimated to have caused 2 trillion won losses for Lotte Group due to business suspension, cancellation of Shenyang shopping mall construction project in northern China, and sales deterioration at its duty-free shop business.

By Lee Han-na and Cho Jeehyun

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