According to industry sources on July 2, Lotte Rental confirmed in a public announcement that it has been in contact with TPG regarding the sale of the company. Recently, TPG conducted exclusive due diligence on Lotte Rental.
The sale involves a 61.18% stake in Lotte Rental held by Hotel Lotte and Busan Lotte Hotel, with the acquisition price expected to exceed 1 trillion won (approximately $750 million).
Previously, Lotte Rental's largest shareholder attempted to sell its stake to Affinity Equity Partners, but the deal collapsed in May due to opposition from the Fair Trade Commission regarding the merger approval. Now, a concrete buyer has emerged after more than two months. Industry experts anticipate that a stock purchase agreement (SPA) could be finalized within the next month.
In its announcement, Lotte Rental stated, "We have engaged in discussions regarding the sale of shares with TPG, including due diligence, but nothing has been finalized. We will make a further announcement within a month or when specific details are determined."
TPG is a global private equity firm based in the U.S. and is known in South Korea as the second-largest shareholder of Kakao Mobility. With TPG officially expressing its intent to acquire Lotte Rental, the calculations for other potential bidders have become more complex. Multiple candidates are reportedly showing interest in the acquisition of Lotte Rental.
In South Korea, Hankook Tire is mentioned as a potential acquirer. The company participated in the bidding for KT Rental, Lotte Rental's predecessor, in 2015, forming a consortium with the Japanese financial group Orix. Among global private equity firms, MBK Partners, EQT, and KKR, which submitted letters of intent during the previous bidding, are also being considered as candidates.
The sale price is seen as a critical variable in the acquisition process. Affinity Equity Partners previously sought to acquire Lotte Rental for approximately 1.8 trillion won, but the deal fell through due to the Fair Trade Commission's refusal to approve the merger. Industry insiders believe it will be challenging to achieve a similar price in this sale.
Additionally, there are opinions both inside and outside the industry suggesting that a strategic investor (SI) acquiring the company would be preferable for business continuity and long-term competitiveness compared to a private equity firm. One industry source noted, "If the sale price decreases, there is a possibility that currently hesitant candidates may enter the bidding process."
* This article has been translated by AI.
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