A large-scale share purchase agreement worth over KRW 1.3 trillion, involving a change in the largest shareholder of Lotte Rental, has been signed.

In a regulatory filing on the 11th, Lotte Rental announced that it has entered into a share purchase agreement to sell the Lotte Rental stakes held by its largest shareholder, Hotel Lotte, and major shareholder, Busan Lotte Hotel. The buyer in this agreement is 'Lexcode Korea Holdco Co., Ltd.'

The detailed terms of the transaction are as follows:

• Shares subject to sale: 22,212,063 common shares of Lotte Rental (61.17% of total shares) • Breakdown by seller: Hotel Lotte — 13,846,833 shares (38.14%); Busan Lotte Hotel — 8,365,230 shares (23.03%) • Total purchase price: KRW 1,310,511,717,000 • Price per share: KRW 59,000

However, the purchase price may be adjusted by the corresponding amount if certain specified events occur between the reference date and the transaction closing date. The closing date shall be the date falling 14 business days from the date on which all conditions precedent to closing, including approval of the business combination from the Korea Fair Trade Commission, are satisfied, or such other date as the parties may mutually agree upon in writing.

If this agreement is successfully completed, the largest shareholder of Lotte Rental will change. The company stated that relevant details may be subject to change during the implementation of the share purchase agreement, and that it will issue an amended disclosure if any changes occur in the future. In addition, the company plans to file a separate 'change of largest shareholder' disclosure at the actual time the largest shareholder changes pursuant to the share purchase agreement.