Fair Trade Approval for Lotte Rental Sale to TPG Secures KRW 1.31 Trillion
Creatrip Team
18 days ago
Lotte has received approval from the Korea Fair Trade Commission to sell a 61.2% stake in Lotte Rental—owned by Hotel Lotte and Busan Lotte Hotel—to U.S. private equity firm TPG. The deal, priced at KRW 59,000 per share, totals KRW 1.3105 trillion and is expected to close by October after shareholder procedures. Proceeds will be used to strengthen the finances and competitiveness of Hotel Lotte and Busan Lotte Hotel, reduce debt and finance facility and premium-brand improvements. The sale is part of a broader corporate restructuring: Lotte has been selling non-core businesses and idle assets (유휴 자산) this year, totaling about KRW 1.73 trillion in transactions, including the sale of a logistics center and a supermarket store. Petrochemical reorganizations also continue, with recent mergers forming a new integrated firm 'H&L Advanced' and other plants preparing integration plans. Several major Lotte affiliates reported stronger first-half results, and the group says the rental sale will improve profitability and financial health as it accelerates further asset disposals and restructuring in the second half.
