TPG to Launch Tender Offer for Remaining LOTTE rental Shares, Pursue Delisting

KRW 59,000 per share
Total offer value of KRW 831.7 billion

Texas Pacific Group (TPG), a U.S.-based global private equity firm, will launch a tender offer for the remaining shares of LOTTE rental, South Korea's largest car rental company, and move to delist it.

According to the Financial Supervisory Service's electronic disclosure system on November 6, Lexicon Korea Holdco, an affiliate of TPG, will launch a tender offer for 14,097,325 common shares of LOTTE rental, or 38.83%, from November 6 through December 3. This represents the remaining common shares out of LOTTE rental's 36,309,388 issued common shares, excluding the 22,212,063 common shares owned by the tender offeror. KB Securities is managing the tender offer.

The offer price is KRW 59,000 per share, bringing the total offer value to more than KRW 831.7 billion.

TPG said in its tender offer statement, "We intend to pursue this tender offer with the aim of making the target company privately held through a voluntary delisting as quickly as possible and making it a wholly owned subsidiary of the tender offeror."

The tender offeror also said it plans to purchase all shares tendered, regardless of the tender offer acceptance rate, and to pay the offer price in cash.

Last month, TPG acquired a 61.2% stake in LOTTE rental held by Hotel LOTTE and Busan LOTTE Hotel (38.1% and 23.0%, respectively) for approximately KRW 1.3105 trillion.

This content was produced with the assistance of AI translation services.