TPG Offers 59,000 Won per Share to Buy Remaining Stake in Lotte Rental
Key Facts
Lexicon Korea Holdco, a company affiliated with TPG, launched a cash tender offer on Nov. 6 for the remaining shares in Lotte Rental at 59,000 won per share. The tender will run through Dec. 3, 2026, according to published offer details. Lexicon Korea says the aim is to secure control of the company, delist it from the Korean stock market and convert it into a wholly owned subsidiary. The offer gives shareholders a set period to sell their shares at the announced price. The transaction is scheduled to be settled in cash on Dec. 7, according to the published offer details. This is part of the buyer’s plan to complete its acquisition of the remaining shares after taking control.
In morning trading on Nov. 6, Lotte Rental shares stood at 58,400 won at 9:08, up 10.40% from the previous session, according to ChosunBiz. The observed price was 600 won, or about 1.0%, below the 59,000-won offer price. At that time, the shares were trading close to the cash consideration set by the buyer. The 10.40% gain measures the stock’s move against the previous session’s close. The price reflects a snapshot of trading at 9:08 on the day of the announcement.
Lexicon Korea’s plan includes seeking a voluntary delisting of Lotte Rental from the Korean market after converting it into a wholly owned company, according to a company statement. Lexicon Korea said, "We launched the tender offer to secure control of the target company, delist it from the Korean stock market and make it a wholly owned subsidiary." The statement sets out the offer’s purpose as consolidating the remaining ownership under one entity, alongside seeking a delisting. Lotte Rental was listed on the KOSPI market in 2021. No date for completing the delisting was specified in the published details, while cash settlement of the offer was set for Dec. 7, 2026.
Third-quarter 2026 results provide a backdrop on the company’s performance before the offer: revenue was 775.4 billion won and operating profit was 92.9 billion won. Revenue grew 2.3% and operating profitability 4.4% year over year, while the operating margin rose 0.3 percentage points to 12.0%, according to a Lotte Rental statement. Adjusted operating profit, excluding nonrecurring factors, was 97.2 billion won, up 6.6% year over year and in line with market expectations. Net profit, by contrast, was 29.4 billion won, down 24% from the same period a year earlier. The results show growth in revenue and reported and adjusted operating profit alongside a decline in net profit.
In long-term car rentals, revenue reached 430.5 billion won in the third quarter, up 6.2% year over year, while the long-term rental fleet grew 6.5%, the company said. The share of used-car long-term rentals, which the company described as high-margin, rose to 21.2%, compared with 18.8% in the third quarter of 2025 and 15.1% in the third quarter of 2024. The company said accident costs per vehicle continued to decline. In short-term rentals, which include car sharing, revenue increased 12.0% to 93.1 billion won. Daily rental revenue also rose 19.3%, while the "My car M" monthly rental service grew 63.0%.
Third-quarter growth also extended to Biz Rental, where revenue from core products, including office equipment, measuring devices and forklifts, increased 12.4%, and the segment’s operating profit rose 35.5% to 4.2 billion won, according to the company statement. As part of its overseas expansion, Lotte Rental launched a short-term rental service for Korean tourists in Okinawa in July after establishing a local company in Japan and partnering with ORIX Auto. The company then expanded its overseas booking service in August through a partnership with Hertz to cover 63 cities in 8 countries. These activities provide operating context as the tender offer targets the remaining shares. The offer period ends on Dec. 3, with cash settlement scheduled for Dec. 7, 2026.