Lotte Completes Sale of Lotte Rental for 1.3 Trillion Won... Accelerates Business Restructuring
HOTEL LOTTE and LOTTE HOTEL BUSAN sell their entire 61.2% stake to TPG
Proceeds to be used to improve financial soundness and secure future growth drivers
Lotte completed the sale of its controlling stake in Lotte Rental to global alternative asset manager TPG on October 30.
On August 11, Lotte signed an agreement to sell to TPG its entire 61.2% stake in Lotte Rental, held by HOTEL LOTTE and LOTTE HOTEL BUSAN. The sale price was approximately 1.3105 trillion won (59,000 won per share). Lotte plans to use the proceeds to improve its financial soundness and secure future growth drivers.
The sale is part of Lotte's business restructuring, which it has pursued since last year, focusing on non-core businesses and underperforming assets. Lotte Chemical is working to restructure its basic chemicals businesses in Yeosu and Daesan and improve the efficiency of non-core overseas assets. Lotte Energy Materials is focusing on high-value-added businesses, including battery foil for energy storage systems (ESS), while Lotte Shopping and HOTEL LOTTE are also disposing of unused land and underperforming stores.
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A Lotte official said, "We selected the buyer after comprehensively considering Lotte Rental's efforts to strengthen its core competitiveness and its mid- to long-term growth prospects, and we look forward to continuing sustainable growth with the new shareholder." The official added, "Lotte will also accelerate adjustments to the Group's portfolio while closely reviewing the profitability, growth potential and strategic fit of each business, improving its financial soundness and firmly establishing a foundation for sustainable growth."
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