KT and Lotte Group said on March 12 that they signed a stock purchase agreement on KT Rental, the rental car unit. Earlier on February 18, KT had selected Lotte Group as the preferred bidder for the KT Rental deal.
The two sides went through a process of negotiation and arrived
at a deal on March 11 to sell the 100-percent stake, 58 percent held by KT and 42 percent owned by other financial investors, in KT Rental at 1.02 trillion won to Hotel Lotte.
KT will use the proceed from the deal to improve its financial standing while spending on strengthening its ICT capabilities. Meanwhile, Lotte Group will nurture the newly acquired rental car unit as a future growth engine by leveraging it with other existing businesses like retail, financial services, and tourism.
The group will retain the current workforce of KT Rental without any downsizing measures. Since 2009, Lotte has never taken forceful restructuring measures after making 30-or-so mergers and acquisitions. Even after the deal is closed, KT and Lotte Group will work closely to pursue a variety of partnerships.
by Lee Jae-seung
