이 기사는 2019년 12월 26일 16시20분 thebell에 표출된 기사입니다

South Korea’s SK Group is said to be bidding for Logen Logistics, with the aim of generating synergies with its affiliate SK Energy.

SK Group has started to review the information memorandum (IM) of Logen, which has been put up for sale by Hong Kong-based private equity firm Baring Private Equity Asia (BPEA), sources familiar with the matter said on December 20. SK Energy, a subsidiary of the conglomerate’s affiliate SK Innovation, has expressed interest in bidding for the nation's fifth-largest package delivery firm.

The focus of SK Energy’s possible acquisition of Logen is on turning a vast network of gas stations into a logistics base. SK Energy is the number one gas station operator in the country, with more than 3100 gas stations under its brand nationwide.

With competition getting fierce, profitability of domestic gas station market has continued to decline. This has led the country’s oil refiners, including SK Energy, to further invest in diversifying their revenue base. As part of such efforts, SK Energy last year launched C2C logistics service Homepick in partnership with its rival GS Caltex, where their gas stations serve as warehouses.

The idea of connecting a network of gas stations to logistics services seems to be tempting to Logen, as this could complement the logistics company’s “asset-light” structure, which is considered to be working against the company in the sale process. With no real estate – such as warehouses – on its asset side, more than 80 percent of deliveries by Logen currently occur through C2C channel.

Other strategic investors in the country expressed their interest in bidding for Logen, too. Among them are mobility platform Kakao Mobility and e-commerce platform WeMakePrice, which indicates that both companies – like SK Energy – are also weighing ways to generate synergies between the logistics business and their existing business portfolio.

There are, however, things to consider for strategic investors bidding for Logen. Most of all, unlike other major logistics companies in the country, Logen does not have its own logistics infrastructure but makes individual contracts with delivery men. This means that any company acquiring Logen might need to invest a large amount of money at the beginning.

Meanwhile, financial investors considering bidding for Logen cannot help but think about future exit strategies, especially given that BPEA’s previous attempt to sell the company failed. If, however, interest from strategic investors stays high throughout the bidding process, more financial investors could show interest in the logistics company. High growth potential of the parcel logistics industry with a rapid growth of e-commerce is another factor in favor of Logen.

(By reporters Kim Hye-ran and Han Hee-yeon)