![[줌인]Kim Bong-jin succeeded in a 4.4 trillion deal after a year… Now to the market](https://image.edaily.co.kr/images/Photo/files/NP/S/2020/12/PS20122900168.jpg "[줌인]Kim Bong-jin succeeded in a 4.4 trillion deal after a year… Now to the market")
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A jackpot for financial investors (FI), such as Hillhouse Capital, with the largest sale of domestic startups, which is close to 4.4 trillion won, and exits for a large amount even if invested in domestic startups (realizing profits by selling shares after startup) ).
In addition, Chairman Bong-jin Kim, who founded elegant brothers with a capital of 30 million won, will continue the story of success by expanding the range of activities to become a major shareholder and management of global companies beyond the domestic market.
Kim Bong-jin and Bae-min valued as high as Yogiyo Arm
There was also a prospect that the deal would be broken once, as the Fair Trade Commission placed a condition that it should sell’Yogiyo’ to DH because of the monopoly issue. However, DH overturned his expectations and made a choice to embrace Bae Min by offering a yogi-yo that has been elaborated in Korea for over 10 years.
The industry believes that DH highly valued Chairman Kim and Min Bae. The analysis is based on the judgment that Chairman Kim’s leadership and Bae Min’s marketing strategy are essential for targeting the Asian market.
Nicklas Ostberg, DH founder and CEO, said in a statement after approval from the Fair Trade Commission, “I am thrilled to take one step closer to realizing collaboration with elegant brothers, and I am looking forward to welcoming Chairman Bong-jin Kim as a family member.” We will expand our presence throughout Asia.” Chairman Kim said, “Through partnership, we will develop the entire ecosystem of the delivery industry and cooperate together to innovate the delivery industry in Asia.”
When the news of DH’s acquisition of elegant brothers last year was first delivered, there was a view of it as a successful case of a domestic startup, but there was also a negative public opinion about whether the national wealth was leaked as a domestic company passed over to a German company. At that time, Chairman Kim explained that it was a choice to face the fierce challenges of large IT platforms and insufficient capital to compete on the global stage. He also emphasized that it is a method of choice for Baemin’s global advance, and not simply handing him over to DH.
Securing a stake in DH and expanding the distribution business throughout Asia
In fact, in the one year waiting for approval from the FTC, Coupang, a latecomer in the domestic food delivery market, has grown terribly, and Naver and Kakao are also sharpening their lines. Bae Min still dominates the market at number one, but the improvement in performance was a burden due to excessive marketing competition and improved treatment of riders (delivery workers). In fact, the elegant brothers turned to the red with an operating loss of 36.4 billion won last year due to excessive marketing expenses.
It is time to expand business to the Asian market, where the population is much larger and the growth trend is steep. Bae Min recently started his business in Japan based on the results of the FTC’s review. Vietnam, which has advanced before Japan, is being evaluated as a successful settlement. However, there is a limit to breaking through the Asian market one by one by oneself. Once the merger and acquisition (M&A) with DH is finalized, business in the 11 Asian countries where DH has entered will be easier.
The follow-up work will accelerate after the 6-month period for Yogiyo’s sale suggested by the FTC (6 months extension is possible if necessary), and the 1st quarter of next year (the final decision to take over the elegant brothers after the Yogiyo sale) mentioned in DH’s official position. It is a prospect.
First, 13% of the shares of Chairman Kim and the elegant brothers’ management will be exchanged for shares of DH. Chairman Kim is one of three members of the global advisory committee formed at DH’s headquarters, and leads the management of DH together with CEO of Öskberg and Chief Technology Officer Emanuel Tomasin (CTO).
In other words, Chairman Kim is not recovering the investment, but securing a stake in DH and using it as a foothold for new global management.
In addition, DH and Chairman Kim will establish a joint-Benz’Wooah DH Asia’ in Singapore with a 50-50 stake. Wooah DH Asia manages all of its businesses in Asia’s Baemin subsidiaries, including Korea, Vietnam, Japan, and 11 Asian countries where DH has entered, including Taiwan, Laos, Malaysia, Bangladesh, and Singapore. Chairman Kim will serve as the Chairman of Wha DH Asia and Head of the Joint Venture Division. Food Panda (DH subsidiary) Asia’s CEO, Jacob Angele, and Oh Se-yoon, now Chief Financial Officer of Graceful Brothers, will be appointed co-CEO of the joint venture, managing the Food Panda and Uah DH Asia divisions, respectively.