Korean chaebol Eugene has announced that it will buy Hi-Mart, Korea's largest consumer electronics retailer, for W1.95 trillion $2.12 billion from a consortium of investors that include Hong Kong-based Affinity Equity Partners. The latter, together with Temasek Holdings and the Government of Singapore Investment Corp., acquired an 80% equity stake in Hi-Mart in 2005 for W400 billion.
The transaction, according to Eugene, would generate synergies within its logistics arm and Hi-mart.
According to sources, over 10 companies bid for the stake. Although Eugene was not the highest bidder, it succeeded on the basis that it will keep Hi-martÆs management rather than restructure the company, as would have been the case if a larger conglomerate were...
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