TPG has completed its acquisition of a controlling 61.17% stake in Lotte Rental, South Korea's largest car rental company, for ₩1.31tn ($990m). The deal, executed via Lexicon Korea Holdco, involved an off-market purchase of 22.2 million shares at ₩59,000 each from Hotel Lotte and Busan Lotte Hotel. TPG, through TPG Capital Asia, financed the transaction with a mix of equity and debt, differing from earlier reports of an all-equity structure.
The acquisition marks Lotte Rental's first change of controlling shareholder in 11 years and follows a blocked attempt by Affinity Equity Partners. The Korea Fair Trade Commission approved the deal, citing no competitive overlap. Lotte will use the proceeds to strengthen its hotel affiliates' finances and expand its hospitality business.
Lotte Rental has also rebranded, dropping the Lotte 'L' logo from its name.
Source: PE Insights · Summarized by HeadlinesBriefing