Affinity Equity Partners is set to significantly expand its footprint in South Korea’s vehicle leasing market with a major acquisition from Lotte Group.
The private equity firm announced Friday it will sign a definitive agreement on March 11 to purchase a 56.2% controlling stake in Lotte Rental Co., South Korea’s largest car rental and leasing company, for 1.57 trillion won ($1.1 billion).
The deal structure includes acquiring existing shares from Hotel Lotte Co. and Hotel Lotte Pusan Co., plus injecting 211.9 billion won into Lotte Rental through newly issued shares. This capital infusion is designed to strengthen the company’s financial position.
According to terms disclosed, the rights offering is priced at 29,180 won per share, nearly matching Lotte Rental’s Friday closing price of 29,050 won. The total valuation represents approximately 2.5 times the company’s current market value.
This acquisition follows Affinity’s purchase of SK Rent-a-Car, South Korea’s second-largest car leasing company, which it bought from SK Networks Co. last year for 820 billion won.
Despite now controlling both the first and second-ranked players in South Korea’s car leasing market, Affinity stated it intends to operate Lotte Rental as a separate entity from SK Rent-a-Car.
The transaction continues a trend of private equity firms taking substantial positions in Asian mobility businesses as demand for flexible vehicle solutions grows across the region.
