TPG makes tender offer for 38.83% of Lotte Rental's remaining shares... “Push for delisting”

Texas Pacific Group (TPG), an American global private equity fund (PEF), has decided to make a tender offer for the remaining shares of Lotte Rental [089860], Korea's No. 1 rental car operator, and to pursue delisting.

According to the Financial Supervisory Service's Electronic Disclosure System on the 6th, Lexicon Korea Holdco, a TPG affiliate, will make a tender offer for 14,097,325 shares (38.83%) of Lotte Rental's common stock from this day to the 3rd of next month.

This corresponds to the remaining common stocks out of Lotte Rental's 36,309,388 shares of common stock, excluding the 22,212,063 common stocks owned by the tender buyer.

The purchase price is 59,000 won per share, and the total purchase size is about 831.7 billion won. The underwriter for the tender offer is KB Securities.

In the prospectus, Lexicon Korea Holdco said, "We intend to pursue this tender offer process with the goal of delisting the target company as quickly as possible through voluntary delisting and making it a complete subsidiary of the tender buyer."

In addition, the tender buyer announced that he plans to purchase all of the stocks applied for the tender offer regardless of the tender offer application rate, and that the tender offer price will be paid in cash.

Previously, TPG completed securing management rights last month by acquiring a 61.2% stake in Lotte Rental (Hotel Lotte 38.1%, Busan Lotte Hotel 23.0%) held by Hotel Lotte and Busan Lotte Hotel for approximately KRW 1.3105 trillion.