Emart, Lotte, SKT, MBK make short list for eBay Korea in $4.4 bn deal

[Photo by Yonhap]

Emart Inc., Lotte Shopping Co., SK Telecom Co., and MBK Partners, each big in their fields of retail, wireless network and private equity capital, have been shortlisted to vie for eBay Korea LLC, third largest ecommerce player in South Korea with Gmarket, Auction, and G9 under it arm worth up to 5 trillion won ($4.4 billion).

According to multiple sources from the retail and investment bank industry on Monday, eBay Korea’s lead sales managers Morgan Stanley and Goldman Sachs separately informed the contenders that they have made the short lis. SK Telecom was the first among the four to be notified, followed by Lotte Shopping, Emart, and local private equity fund MBK Partners.

The contenders are eligible to carry out due diligence on eBay Korea to package a proposal in pricing and other terms for the buyout. A preferred candidate would be chosen after review on the final bids late April.

eBay Korea is a major online marketplace provider with cumulative annual gross merchandise value (GMV) of the three platforms coming at around 20 trillion won, posing as a formidable contender to Naver Shopping with GMV of 26.8 trillion won and Coupang of 20.9 trillion won.

[Source: each company]

The acquisition will instantly put the buyer in the ranks of majors, and each contestant expressed eagerness to win it over.

Last week, Kang Hee-tae, chief executive of Lotte Shopping, said during shareholders meeting that the company is fully interested in buying eBay Korea. Lotte is seeking to expand business of its online mall Lotte ON while Emart of SSG.com.

Kang Heui-seok, chief executive of Emart, owned by Shinsegae Group, also told shareholders that the company is “earnestly thinking about buying eBay Korea.”

Park Jung-ho, chief executive of SK Telecom, operator of online mall 11Street, also said during a shareholders meeting last week that the company is in discussion with Amazon.com as the acquisition of eBay Korea is an issue of comprehensive interest.

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