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Lotte rental · 089860 · Other

Lotte Rental: News Reports Point to TPG as New Controlling Shareholder

Why this report

Written after:

A news report on 2026-10-22 says Lotte Rental is being acquired by TPG and that shareholder value is expected to improve. The filings excerpts are not available, so the deal terms cannot be confirmed from our data, but the model estimate has moved up and the share price is a little lower than at the initiation.

Written Oct 22, 2026 · Data as of Oct 21, 2026 · 0 views

This is not financial advice. The report does not recommend buying or selling anything.

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What happened

Asia Economy, via Click e-Stock, reported on 2026-10-22 that Lotte Rental is being acquired by TPG and that shareholder value is expected to improve. No filing text was provided with this event, so the price, stake size and closing timetable are not available to us.

Some context appears in recent headlines. A 2026-10-13 filing recorded a change in the largest shareholder's holdings, and headlines on 2026-10-20 and 2026-10-21 mention a major shareholder change and a broker raising its target price to ₩59,000 on expected stronger shareholder returns. Those are the broker's view, not ours. Other headlines say a corporate bond drew ₩644B, four times the target, and that short-term borrowings were about 6 times cash.

The shares closed at ₩49,600 on 2026-10-21, against ₩51,300 on 2026-10-12. They are up 28.3% over three months and 72.2% over one year. Foreign ownership was 6.8%, down from 7.4% sixty days earlier, while foreign and institutional investors were net buyers over the last 20 days.

What it changes for the thesis

The previous report described a stable, slow-growing business with thin margins, high leverage and negative free cash flow, whose share price had risen faster than earnings. It said the reasons for the rally could not be confirmed. The ownership-change reports offer a possible explanation, but we cannot verify it from the filings we have.

The reported change does not alter the financial picture. TTM revenue is ₩2.98T, operating margin 11.3%, net income ₩118.4B, liabilities to equity 412.6% and free cash flow -₩412.4B. Borrowings of ₩4.85T against cash of ₩384.0B keep refinancing relevant. Whether a new owner changes capital structure, dividends or strategy is not shown in the data.

What it changes for the valuation

The model's base estimate is now ₩554,028 per share, with a bear case of ₩294,961 and a bull case of ₩1,101,488. The previous report had ₩380,015 base, ₩155,959 bear and ₩1,147,364 bull. The discount rate used is now 5.1% versus 3.9% before.

The higher base and bear values come from the model update on the same TTM to H1 2026 financials, not from the TPG news. The range remains very wide and far above the ₩49,600 share price, so it is highly sensitive to inputs such as the discount rate and negative free cash flow. This is a model estimate based on the assumptions shown.

At the current price the stock trades at 15.2 times earnings, 1.1 times book and 0.6 times sales, with a dividend yield of 2.4%. Enterprise value is ₩6.27T; EV/EBITDA is not available.

Closing view

The news raises the possibility of a significant ownership change, but the terms are not confirmed in the data we have, and the underlying financials are unchanged: steady revenue, stable margins, high leverage and negative free cash flow. The model estimate has risen but remains very wide and should be treated with caution. Deal price, closing conditions and any effect on financing and payouts are the open questions to watch in later filings. This note offers no recommendation.

Model estimate of fair value

Bear
₩294,961
+494%
Base
₩554,028
+1016%
Bull
₩1,101,488
+2119%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Base case of the 5-year discounted cash flow model on the stock's Valuation tab (statements TTM to H1 2026; discount rate 5.1%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 22, 2026Update noteNewsLotte Rental: News Reports Point to TPG as New Controlling Shareholder
  2. Oct 13, 2026InitiationStart of coverage (300 largest)Lotte Rental: Sharp Share Price Rise Meets Thin Margins, High Leverage and a Wide Model Range

Built only from jonbur's own data: prices and investor flows, filed financial statements and filings, and news headlines. Disclosed (filed) data is labelled as such. Written by AI and may contain mistakes.

This is not financial advice. The report does not recommend buying or selling anything.

Source: KRX statistical information