Lotte Group reportedly bids for Ministop Korea Lotte’s convenience store chain may need support from parent company to acquire target
Translated by Ryu Ho-joung 공개 2022-01-10 08:11:28
이 기사는 2022년 01월 10일 08:07 thebell 에 표출된 기사입니다.
Lotte Group is said to have expressed interest in acquiring Ministop Korea, the country’s fifth largest convenience store retailer, with the South Korean conglomerate likely to consider doing so through its convenience store chain Korea Seven.Japan’s Aeon Group, which owns Ministop Korea, plans to sell a 100% stake in the South Korean unit of its convenience store business. The stake is estimated to be worth about 200 billion won ($166 million).
Lotte Group declined to comment on whether it is bidding for Ministop Korea. The retail conglomerate was one of the suitors for the convenience store chain when Aeon Group made the first attempt to sell the asset four years ago, although the sale was ultimately called off in 2018.
Other bidders in the race include Emart24, the convenience store chain of Shinsegae Group, and private equity firm Anchor Private Equity.
A potential acquisition of Ministop Korea by Lotte Group could help expand the market share of its convenience store chain, Korea Seven, and also generate synergies with Lotte Shopping amid the conglomerate’s push for omnichannel retail.
The cash balance of the group as a whole is sufficient to fund the acquisition. However, industry watchers are skeptical about Korea Seven’s ability to acquire the convenience store chain on its own.
Korea Seven had cash and cash equivalents of 322 billion won at the end of September last year. But its debt levels have risen in recent years due to the Covid-19 pandemic, with the company’s total debt standing at 1.6 trillion won at the end of September last year and the financial expense of 18 billion won in the first three quarters of 2021.
Moreover, additional investment may need to be made after the acquisition. “Extra costs would be needed to complete post-merger integration,” an industry insider said. “But with an increase in the number of stores, there would also be a saving in other operational costs such as logistics.”
Ministop Korea was also hit by the pandemic. It recorded an operating loss of 14.3 billion won and a net loss of 13.8 billion won in the fiscal year ended on February 28, 2021 on revenue of 1.1 trillion won, down 4.2% year-over-year. (Reporting by Hyo-beom Lee)
< 저작권자 ⓒ 자본시장 미디어 'thebell', 무단 전재, 재배포 및 AI학습 이용 금지 >
관련기사
best clicks
최신뉴스 in 전체기사
-
- 우리금융 "롯데손보 M&A, 과도한 가격 부담 안한다"
- 신한캐피탈, 지속성장 포트폴리오 리밸런싱 체계 강화
- 하나금융, ELS 악재에도 실적 선방…확고한 수익 기반
- 하나금융, 자본비율 하락에도 주주환원 강화 의지
- 국민연금, '역대 최대 1.5조' 출자사업 닻 올렸다
- [도전 직면한 하이브 멀티레이블]하이브, 강한 자율성 보장 '양날의 검' 됐나
- [퍼포먼스&스톡]꺾여버린 기세에…포스코홀딩스, '자사주 소각' 카드 재소환
- [퍼포먼스&스톡]LG엔솔 예견된 실적·주가 하락, 비용 절감 '집중'
- [퍼포먼스&스톡]포스코인터, 컨센서스 웃돌았지만 주가는 '주춤'
- 신한금융, ‘리딩금융’ 재탈환에 주주환원 강화 자신감