 |
View of Lotte Card. (Photo=Lotte Card) |
[Alpha Biz= Reporter Kim Sangjin] MBK Partners, a private equity firm (PEF), has selected UBS as the lead advisor for the sale of Lotte Card. The formal sale process is expected to begin in about three to four months, with the company estimated to be valued at up to 3 trillion won.
According to investment banking (IB) industry sources on December 2, MBK Partners has recently chosen its advisor and begun the necessary preparations for the sale of Lotte Card’s management rights. Lotte Card, which has 9.52 million members and holds a 10.5% market share in credit card sales, ranks fifth in the industry.
Previously, in October 2019, MBK Partners formed a consortium with Woori Bank to acquire a 79.83% stake in Lotte Card for 1.381 trillion won. MBK holds 59.83%, while Woori Bank owns 20%. The remaining 20% is held by Lotte Shopping.
MBK Partners attempted to sell Lotte Card in 2022 but the deal fell through due to differences in expectations with potential buyers. Last year, it recouped some of its investment by selling its subsidiary, Loka Mobility, to Macquarie Asset Management for 415 billion won. In October this year, it also conducted a 1 trillion won refinancing.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
