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Lotte Rent-a-Car Seoul Station branch. (Photo=Lotte Rental) |
[Alpha Biz= Reporter Kim Jisun] Lotte announced the sale of its car rental subsidiary, Lotte Rental, to Hong Kong-based private equity firm Affinity Equity Partners for ₩1.6 trillion.
Hotel Lotte revealed on the 8th that it had signed a Memorandum of Understanding (MOU) on the 6th, designating Affinity Equity Partners as the preferred bidder for the acquisition of Lotte Rental.
The transaction involves selling a 56.2% stake (20.4 million shares) held by Hotel Lotte, the largest shareholder, and Busan Lotte Hotel, a key stakeholder, at ₩77,115 per share, including a management control premium. The total sale amount is ₩1.57 trillion. After the sale, Hotel Lotte and Busan Lotte Hotel will retain a 5% stake (1.8 million shares). Lotte Rental's corporate value was estimated at approximately ₩2.8 trillion during the negotiation.
Both Lotte and Affinity have agreed to prioritize stable employment for Lotte Rental’s employees.
Following the acquisition, Affinity plans to operate Lotte Rental as a standalone entity for three years while continuing to use the Lotte brand. As the preferred bidder, Affinity will engage in exclusive negotiations with Lotte for a specified period to finalize the acquisition.
Lotte Rental, the leading car rental company in South Korea, has shown consistent growth. The company recorded consolidated cumulative revenue of ₩2.71 trillion and an operating profit of ₩213.2 billion for the first three quarters of this year.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
