Shareholders of Hotel Lotte Co., Lotte Group's hotel unit, approved Thursday the listing of its shares on the Seoul bourse, backing the retail giant's efforts to improve its governance structure.

Hotel Lotte has been preparing for an initial public offering

(IPO) after Lotte chairman Shin Dong-bin last month promised to improve corporate transparency by listing its affiliates and untangle the complex cross-shareholding structure.

Lotte, the country's fifth-largest conglomerate, has come under growing pressure to bolster its transparency after a family feud between founder Shin Kyuk-ho and his two sons, Dong-joo and Dong-bin, shed light on its murky structure.

In a closed-door meeting in Seoul, shareholders also fired Shin Dong-joo, the founder's first son and the former vice president of Japan-based Lotte Holdings Co., Hotel Lotte said, bolstering the current chief's foothold in the group.

Lotte has been reviewing proposals by 13 candidates for its IPO, with plans to pick a lead manager later this month, a Lotte spokesperson said.

Hotel Lotte is 99 percent controlled by Japanese shareholders, including Tokyo-based Lotte Holdings and other unlisted Japanese companies.

Lotte has said the hotel unit is expected to have a market capitalization of around 10 trillion won ($8.5 billion) when it lists, but market watchers estimate the deal could reach as much as

20 trillion won, considering its large stakes in affiliates and strong earnings.

Established in 1973, the hotel holds an 8.83 percent stake in Lotte Shopping, a 12.99 percent stake in Lotte Aluminum and an

18.77 percent stake in Lotteria.

Meanwhile, Lotte Holdings, the group's Tokyo-based holding firm, holds a 19.07 percent stake in Hotel Lotte, while group investment units called L Investment Company hold a combined 72.65 percent stake. (Yonhap)