Lotte Shopping Co., the flagship affiliate of retail-oriented conglomerate Lotte Group, said Friday it reached a deal to buy electronics appliance retailer Hi-mart Co. for 1.24 trillion won ($1.09 billion).

The stock purchase agreement calls for the takeover of a 65.25 percent stake in the electronics retailer currently owned by Eugene Corp., Hi Consortium and former Hi-mart CEO Sun Jong-koo, Lotte said in a regulatory filing.

The company added it is paying an average of 81,026 won for the 15.4 million Hi-mart stocks.

The deal was reached just two days after Lotte was tapped as the preferred bidder after private equity firm MBK Partners Ltd. opted not to bid for Hi-mart.

“The deal was reached quickly because both sides wanted to conclude the transaction as soon as possible,” a company spokesperson said. He added, however, that Lotte Shopping and the whole conglomerate need to determine how to incorporate Hi-mart into their business operations.

Market insiders said by buying Hi-mart, and with reported sales hitting 3.4 trillion won last year, Lotte will be in a good position to expand its market presence in consumer electronics areas. (Yonhap News)