[Edaily Reporter Han Jeon-jin ] Lotte announced on the 11th that it has signed a definitive agreement with global investment firm TPG to sell its controlling stake in LOTTE rental.

The sale covers the entire 61.2% stake in LOTTE rental held by Hotel Lotte and Busan Lotte Hotel. The sale price is 59,000 won per share, bringing the total transaction value to 1.3105 trillion won.

Lotte explained that it had been in discussions with multiple potential buyers since May, when its agreement with Affinity, the previous preferred bidder, was terminated. It selected TPG as the final acquirer after comprehensively considering factors such as enterprise value, acquisition structure, employment stability, and financing capabilities.

Lotte plans to use the proceeds from the sale to improve its financial structure by repaying the debts of Hotel Lotte and Busan Lotte Hotel, as well as to fund investments in its hotel business.

Lotte plans to use this sale as an opportunity to accelerate the reorganization of its portfolio around core businesses. The company intends to continue streamlining non-core assets while improving the profitability of LOTTE SHOPPING CO., LTD.(023530)and Hotel Lotte and returning LOTTE CHEMICAL CORPORATION to profitability.

This transaction is expected to be finalized following approval of the business combination by the Fair Trade Commission.

A Lotte official stated, “We selected the buyer after comprehensively considering market conditions and the company’s mid- to long-term growth strategy,” adding, “We plan to focus even more on strengthening the competitiveness of our core businesses and enhancing our business portfolio.”