Lotte Rental Agrees to $1.1 Billion Selloff to Affinity Equity Partners
Deal News | Dec 06, 2024 | Aim Group
Affinity Equity Partners, a Hong Kong-based private equity fund, is set to acquire a controlling stake in Lotte Rental, a South Korean integrated mobility services company, for approximately $1.1 billion. Major shareholders, Hotel Lotte Co. and Lotte Hotel Busan, have signed a memorandum of understanding to liquidate nearly 56.2% of the company's shares. The transaction is expected to be finalized by March next year and values the shares at KRW77,115 each, summing up to approximately KRW1.57 trillion. Lotte Rental, known for buying and selling used cars, leasing, and long-term renting, was incorporated into Lotte Group in 2015. Recently, it reported $513 million in sales and $58 million in operating profit for Q3 2024.
Sectors
- Private Equity
- Mobility Services
Geography
- South Korea – South Korea is the home country of Lotte Rental, where its operations and headquarters are based.
- Hong Kong – Hong Kong is the base of Affinity Equity Partners, the private equity firm acquiring Lotte Rental.
Industry
- Private Equity – Affinity Equity Partners is the private equity firm involved in the acquisition of Lotte Rental.
- Mobility Services – Lotte Rental operates in the integrated mobility services sector, offering services like leasing, long-term renting, and used car transactions.
Financials
- $1.1 billion – The acquisition price Affinity Equity Partners is paying for a 56.2% stake in Lotte Rental.
- KRW1.57 trillion – The estimated value of the shares at KRW77,115 each.
- $513 million – Sales recorded by Lotte Rental in Q3 2024.
- $58 million – Operating profit recorded by Lotte Rental in Q3 2024.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Lotte Rental | Target Company | Company | A South Korean integrated mobility services company offering leasing, long-term renting, and used car services. |
| Affinity Equity Partners | Bidding Company | Company | A Hong Kong-based private equity fund acquiring a controlling stake in Lotte Rental. |
| Hotel Lotte Co. | Selling Company | Company | Major shareholder in Lotte Rental, selling its shares to Affinity Equity Partners. |
| Lotte Hotel Busan | Selling Company | Company | Another major shareholder in Lotte Rental involved in the sale to Affinity Equity Partners. |