The global private equity fund (PEF) management firm Affinity Equity Partners has completed the acquisition of LOTTE Rental.
On the 12th, LOTTE Rental announced that its largest shareholders, Hotel Lotte and Busan Lotte Hotel, signed a stock purchase agreement (SPA) with Affinity the day before to sell 56.2% of LOTTE Rental's equity for 1.5728 trillion won (77,115 won per share).
Affinity has also entered into a subscription agreement (SSA) for new shares through a paid-in capital increase from LOTTE Rental. LOTTE Rental will issue new shares worth a total of 211.9 billion won. The common stock consists of 7,261,877 shares, with an issue price of 29,180 won per share.
The funds raised from the issuance of new shares will be used for the expansion of LOTTE Rental's business-to-consumer (B2C) used car transactions and for the early repayment of corporate bonds due to changes in major shareholders.
Affinity previously acquired SK Rent-a-Car for 820 billion won. In effect, it has acquired both the first and second largest operators in the rental car institutional sector. Min Byeong-cheol, CEO of Affinity, noted, "We will fulfill our responsibilities to enhance LOTTE Rental's corporate value and help the domestic rental car market mature."