SEOUL, KOREA - KT Rental Co., a general rental company offering short-term and long-term car rental, chauffeured, overseas reservation, and camping van services, is emerging as one of the hottest deals of the second half of the year.

 

Major corporations including SK Group and large private equity fund firms are plunging into the bidding war. KT Rental, an affiliate of KT which put the unit out on the market as part of a restructuring measure to improve its financial standing, posted sales revenue of 885.2 billion won and net profit of 32.3 billion won last year.

 

According to investment banking sources on August 4, a total of seven suitors, including SK Group, GS Group, Lotte Group, Hankook Tire, Han & Co., Affinity Equity Partners, and IMM Private Equity have so far tendered applications. Of these, Affinity Equity Partners was the first to do so after picking JPMorgan as the principal underwrier. SK Networks is also reviewing the selection of a foreign investment bank as the underwriter.

 

Lotte Group is also busy preparing for the acquisition. In addition, Kyowon Group, which has an ample experience in rental businesses through its home water purifier and bidet rental units, is also interested in the asset. KKR & Co., an American private equity fund firm, is also expected to join the fray. SK Networks, however, is considered the most likely winner for the deal. Once it can acquire KT Rental, it will be able to command more than 30 percent of the market share, widening the gap with the No. 2 player AJ Rental Car with a share of 13.3 percent.