Lotte Rental to Sign SPA with Affinity Equity Next Month
Deal News | Feb 28, 2025 | Aim Group
A share sale-purchase agreement between Lotte Rental, a South Korea-based company, and Affinity Equity Partners, a private equity firm based in Hong Kong, is set to be signed on the 11th of next month. This agreement follows the terms initially reached by the companies in December of the previous year. Concurrently, Lotte Rental is planning a KRW212 billion capital increase through a third-party allocation. In 2022, Lotte Rental reported sales of $1.9 billion, marking a 1.8% increase, while its operating profit declined by 7% to $196 million. Affinity Equity Partners Korea CEO Byung-Cheol Min expressed enthusiasm over the acquisition, emphasizing an aim to enhance Lotte Rental's growth and competitive edge.
Sectors
- Private Equity
- Automotive Rental
Geography
- South Korea – Lotte Rental is based in South Korea, with its financial performance and strategic decisions impacting the regional market.
- Hong Kong – Affinity Equity Partners, the private equity firm involved in the deal, is based in Hong Kong.
Industry
- Private Equity – Affinity Equity Partners is a private equity firm involved in the acquisition of shares in Lotte Rental.
- Automotive Rental – Lotte Rental operates in the rental car industry, reflected in its financial performance and growth strategy.
Financials
- KRW212 billion – Planned capital increase through a third-party allocation by Lotte Rental.
- $1.9 billion – Lotte Rental's sales for the last year, reflecting a 1.8% increase.
- $196 million – Lotte Rental's operating profit for the last year, representing a 7% decrease.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Lotte Rental | Target Company | Company | A South Korea-based rental company involved in the share sale agreement with Affinity Equity Partners. |
| Affinity Equity Partners | Bidding Company | Company | A Hong Kong-based private equity firm engaged in signing a SPA with Lotte Rental. |
| Byung-Cheol Min | CEO of Affinity Equity Partners Korea | Person | Expressed enthusiasm over the acquisition, focusing on Lotte Rental's growth. |