US private equity firm TPG has agreed to acquire a 61% stake in South Korea’s largest car-rental company, Lotte Rental, from two affiliates of Lotte Group in a deal valued at KRW1.31tn ($925m), according to a report by Reuters.
The transaction will see TPG take control of Lotte Rental, which is listed in Seoul and operates one of the country’s biggest vehicle-rental businesses.
For Lotte Group, the disposal forms part of a broader effort to strengthen its balance sheet and generate liquidity. The conglomerate said proceeds from the transaction will support its financial position while providing additional capital to invest in its core hotel operations.
Lotte Group spans a range of businesses including retail, hospitality and chemicals, and has been seeking to sharpen its portfolio and focus investment on key growth areas.
The deal represents another significant investment by TPG in the Asian market, with the private equity firm targeting an established South Korean platform in the mobility and consumer services sector.
The transaction is valued at approximately $925m based on the exchange rate at the time of the announcement. TPG had not issued a separate comment on the deal as of Tuesday.
The acquisition is expected to close following the satisfaction of customary conditions and regulatory requirements.
