Murugappa Group, promoter of Parrys Confectionery Ltd, on Friday divested its stake representing 60.39 per cent to leading $900 million (Rs 4,000 crore) Korean firm Lotte Confectionery Company Ltd.

Under the agreement signed between Murugappa Group and Lotte, the latter would purchase 22,77,389 fully paid-up shares of Rs 10 each, representing 60.39 per cent of the equity share capital of PCL for cash aggregating over Rs 64.47 crore (Rs 644.7 million), PCL Chairman M V Subbiah and Lotte CEO Soo-Kil Han said in a joint statement.

The amount is equivalent to Rs 283.12 per fully paid-up equity share, they said.

"We believe the selling is in the best interests of the company and its stake holders," Subbiah said.