Participated in preliminary bidding for MBK and Qtendo
Kakao, a leading candidate, was absent
May-June full bidding after two months’ due diligence
Six to seven companies, including SK Telecom and Shinsegae, jumped into the acquisition of eBay Korea. EBay Korea is an e-commerce company with Gmarket, Auction, and G9.
According to the investment banking (IB) industry on the 16th, in the preliminary bidding of eBay Korea held by Goldman Sachs and Morgan Stanley in charge of the sale on the day, MBK Partners, a private equity fund (PEF) manager with SK Telecom, E-Mart, and Homeplus as assets, based in Southeast Asia. 6~7 places, including Qoo10, a direct purchase platform, decided to participate.
The domestic e-commerce market share is Naver 17%, Coupang 13%, eBay Korea 12%, 11st Street 6%, and Lotte On 5%. Depending on who owns eBay Korea, the third largest company, the ranking can fluctuate greatly.
From the stage of distributing an investment prospectus (IM) last month, there were signs of a box office success, with about 10 companies showing interest. The seller is planning to proceed with the main bidding from May to June after selecting’qualified candidates (short list)’ based on the prices and conditions that the candidates wrote down in the preliminary bidding, giving them an opportunity for due diligence for about two months.
Last year’s GMV (GMV) of eBay Korea suggested by the seller was about 17 trillion won, sales of 1.2 trillion won, and operating profit of 83 billion won. Compared to 2019, sales increased by 9.5% and operating profit increased by 34.9%. The strong stamina, which has steadily recorded surplus for 17 years, is positive, but the recent slowing of growth is considered a weakness.
The transaction price expected by the seller is known to be over 5 trillion won. Recently, Coupang made a brilliant debut on the New York Stock Exchange, raising the eye level.
This is the background of large PEFs seeking to pay off their investments through public offerings (IPO), information technology (IT) companies seeking to expand the’commerce platform’, and existing retailers whose survival depends on how to respond to Coupang.
SK Telecom, which owns 11th Street in the open market, and Shinsegae, which operates SSG.com, are the dominant players. Lotte Group participated through its affiliate Lotte Shopping.
Kakao was also mentioned as a leading candidate based on the synergy with Kakao Commerce, but it was decided to absent at the end.
Reporter Joonho [email protected]
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