On the 11th, Lotte announced that it has signed a contract with investment firm TPG to sell its ownership stake in Lotte Rent-a-Car. The assets being sold include the entire 61.2% stake held by Hotel Lotte and Busan Lotte Hotel (38.1% from Hotel Lotte and 23.0% from Busan Lotte Hotel). The transaction price is set at 59,000 won per share, totaling 1.3105 trillion won.
Following the termination of its agreement with the previous buyer, Affinity, in mid-May, Lotte conducted negotiations with multiple potential buyers. After comprehensively evaluating corporate valuation, acquisition structure, employment guarantees, swift transaction completion, and sufficient funding capabilities, Lotte ultimately selected TPG as the final acquirer.
Lotte Rent-a-Car is the leading player in South Korea's car rental market, possessing competitiveness in short-term and long-term rentals, used car sales, and mobility services. Based on its investment experience and capabilities in mobility companies such as Uber, TPG plans to further solidify Lotte Rent-a-Car's leading position in the domestic market and continuously enhance its corporate valuation.
Lotte intends to use the funds generated from this definitive contract to improve the financial stability of Hotel Lotte and Busan Lotte Hotel. By utilizing these resources as investment capital for expanding its core hotel business, Lotte aims to boost profitability and operational efficiency while continuing to strengthen its global competitiveness.
Based on this sale, Lotte plans to promptly advance portfolio adjustments centered on core businesses while improving the profitability of major business segments.
Meanwhile, this transaction is expected to be finalized after receiving approval from the Fair Trade Commission for corporate combination.
A Lotte representative stated, "We selected the acquirer for Lotte Rent-a-Car after comprehensively considering market conditions and the company's medium-to-long-term growth strategy," adding, "We plan to further focus on strengthening the core competitiveness of our key businesses and advancing portfolio optimization."
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