However, Hyundai Department Store Group’s subsidiary Hyundai Home Shopping has decided to bid for Tongyang Magic.
On Sept. 27, the final bids for Tongyang Magic were received from Hyundai Home Shopping, SK Networks, AJ Networks and UNID. The bids are reported to be in the range of 500 billion won (US$ 455.41 million).
CJ Group was rumored to be a strong candidate, but opted out of the race saying that acquiring the company would create little synergy effect with the group’s existing businesses.
SK Networks is reported to have put in an aggressive bid, while Hyundai Home Shopping is also considered a competitive bidder. Hyundai Department Store Group had bid for Tongyang Magic in 2014, and Hyundai Home Shopping and its affiliates’ large cash reserves and their ability to raise cash are considered to give the company an edge in the race.
As for UNID, the company is bidding in a consortium with Stic Investment, while AJ Networks is reported to have formed a consortium with a number of private equity funds and financial companies.
By Choi He-suk (email@example.com)