Lotte Rental shares have surged more than 10% following news that Texas Pacific Group (TPG), the company's largest shareholder, is initiating a tender offer for its remaining shares and pursuing voluntary delisting. The tender offer price is set above the previous closing price, bringing the stock price closer to the offer.
As of 9:32 a.m. on November 6, Lotte Rental shares were trading at 58,500 won, up 5,600 won (10.59%) from the previous day. The difference between the current share price and TPG's tender offer price of 59,000 won has narrowed to 500 won.
On this day, Lotte Rental announced that Lexicon Korea Holdco, a special purpose company controlled by its largest shareholder, would conduct a tender offer for the remaining shares. The tender offer targets 14,097,325 common shares of Lotte Rental, representing 38.83% of the total issued shares. The purchase price is set at 59,000 won per share, with the total tender offer amounting to approximately 831.7 billion won.
The tender offer period runs from today until December 3. The purchaser plans to buy all shares tendered, regardless of the participation rate, with payment to be made in cash. The settlement date for the tender offer is set for December 7, with KB Securities managing the process.
The purpose of the tender offer is to facilitate Lotte Rental's voluntary delisting and complete integration as a wholly-owned subsidiary. The purchaser aims to increase its ownership stake to 100% by adding the shares acquired through this tender offer to the 22,212,063 shares (61.17%) already held. Following this, TPG plans to expedite the voluntary delisting process in accordance with applicable laws.
The tender offer price matches the price TPG previously applied when acquiring management control from Lotte Group. In August, TPG signed a stock purchase agreement to acquire a 61.2% stake in Lotte Rental from Hotel Lotte and Busan Lotte Hotel, completing the payment by October 30. The acquisition amount was 1.3105 trillion won.
Including the funds allocated for the remaining shares in the tender offer, TPG's total investment in Lotte Rental is expected to reach 2.1422 trillion won. TPG plans to offer the same price to minority shareholders to secure the remaining shares and transition Lotte Rental into a privately held subsidiary.
* This article has been translated by AI.
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