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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] Lotte Rental has withdrawn its planned KRW 211.9 billion ($211 million) third-party allotment capital increase, following the collapse of a stake sale deal with Affinity Equity Partners.
The company disclosed on May 21 that the capital raising plan—originally intended to bring in funding from a special purpose vehicle backed by Affinity—has been scrapped.
The move comes after Fair Trade Commission blocked the proposed transaction earlier this year on antitrust grounds. Regulators determined that Affinity’s ownership of SK Rent-a-Car, combined with a potential acquisition of Lotte Rental, would push market share above 38%, significantly restricting competition in the long-term rental market.
Lotte Group had continued discussions with Affinity following the ruling but ultimately decided to abandon the deal.
With the transaction terminated, one of the key objectives of the capital increase—addressing potential early repayment demands on corporate debt—has also been resolved.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
