[Edaily Reporter KYUNG GYEYOUNG ] Lotte Group has completed the sale of its controlling stake in LOTTE rental, valued at 1.3 trillion won.

Lotte Group announced on the 30th that it had finalized a deal to sell the entire 61.2% stake in LOTTE rental held by Hotel Lotte and Busan Lotte Hotel to TPG, a global alternative asset manager.

Previously, on August 11, Lotte Group signed a share purchase agreement with TPG worth 1.3105 trillion won for LOTTE rental. With TPG now as its new owner, LOTTE rental plans to leverage TPG’s global investment capabilities and network to strengthen its foundation for stable growth and enhance the competitiveness and medium- to long-term growth potential of its existing businesses.

Lotte Group plans to use the funds secured from this transaction to improve the financial soundness of Hotel Lotte and Busan Lotte Hotel and strengthen their fundamental competitiveness, while also securing future growth engines.

This sale was carried out as part of the Lotte Group’s portfolio restructuring efforts, which have been underway since last year and focus on non-core businesses and low-efficiency assets.

LOTTE CHEMICAL CORPORATION(011170), a major affiliate of the group, is restructuring its basic chemical businesses in Yeosu and Daesan to shift its business portfolio toward high-value-added specialty products. LOTTE ENERGY MATERIALS CORPORATION is streamlining its business structure to focus on high-value-added businesses, including battery foil for energy storage systems (ESS) and circuit foil for semiconductors. LOTTE SHOPPING CO., LTD.(023530)and Hotel Lotte are also optimizing their assets by divesting idle land and underperforming stores, as well as selling L7 Gangnam.

A Lotte Group official stated, “We selected the acquirer after comprehensively considering LOTTE rental’s core competitiveness and mid- to long-term growth potential, and we look forward to continuing sustainable growth with the new shareholder.” The official added, “Lotte will also accelerate the adjustment of its group portfolio while meticulously reviewing the profitability, growth potential, and strategic fit of each business to enhance financial soundness and solidify the foundation for sustainable growth.”