According to the Financial Supervisory Service’s electronic disclosure system on the 6th, Lexicon Korea Holdco, a special purpose company (SPC) established by TPG, announced that it will conduct a tender offer for 14,097,325 common shares of LOTTE rental from today through December 3. The tender offer price is 59,000 won per share, with a total anticipated purchase amount of 831.7 billion won. KB Securities is serving as the lead underwriter for the tender offer.
This tender offer price is identical to the price at which TPG acquired the controlling stake previously held by the Lotte Group. Previously, in August, TPG signed a share purchase agreement (SPA) to acquire a 61.2% stake in LOTTE rental held by Hotel Lotte and Busan Lotte Hotel, and finalized the acquisition on the 30th of last month upon completing the payment. The total acquisition price amounted to 1.3105 trillion won.
Including the tender offer for the remaining shares, the total amount TPG is expected to invest in LOTTE rental is 2.1422 trillion won. TPG explained the purpose of the tender offer, stating that it would offer general shareholders the same price as during the controlling stake transaction, thereby providing them with an opportunity to recoup their investment at a price that reflects a control premium.
Meanwhile, LOTTE rental traces its origins to Kumho Rent-a-Car, established in 1989. It was acquired by KTCorporation in 2010 and renamed KTCorporation Rental; subsequently, in 2015, the Lotte Group acquired KTCorporation Rental for approximately 1.2 trillion won, transforming it into the current LOTTE rental. The company went public on the KOSPI in 2021, and last year, private equity firm Affinity Equity Partners attempted to acquire it, but the deal fell through after failing to secure approval from the Fair Trade Commission.
