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Lotte Rent-a-Car Seoul Station branch |
[Alpha Biz= Kim Jisun] Lotte announced on the 28th of last month that it has signed a contract to sell Lotte Rental to Affinity Equity Partners.
The sale price for Lotte Rental is 2.8 trillion KRW, based on a 100% stake, with the transaction involving 56.2% of the shares held by Hotel Lotte and Busan Lotte Hotel. The sale price for this stake is 1.6 trillion KRW.
Lotte and Affinity entered into a binding memorandum of understanding (MOU) in December last year, followed by a two-month due diligence process.
Upon the signing of the final agreement, Affinity will conduct a third-party allocation of new shares for Lotte Rental, raising around 2 trillion KRW. The funds raised will be used to improve the financial structure following the change in major shareholders.
Lotte Rental, the industry leader with strong profitability, was sold because the rental business did not align with the group's long-term growth strategy.
Lotte plans to focus on developing its mobility sector as one of its four key growth drivers, centering on technology-driven businesses like electric vehicle charging and autonomous driving.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
