Shinsegae enters $221m share swap deal with portal operator Naver
The two companies agreed to collaborate in a meeting last January.
Shinsegae Group and South Korea's portal operator Naver have agreed to a share swap deal valued at $221m (KRW250b) amidst intensifying competition in the country’s online retail sector, Yonhap reported based on a bourse filing.
Under the agreement, Naver will buy $132.69m (KRW150b) worth of stocks in Shinsegae's discount store chain operator E-Mart to own 2.96% and purchase $88.46m (KRW100b) worth of stocks in fashion retailer Shinsegae International to own 6.85%.
In return, E-Mart and Shinsegae will purchase $221.15m (KRW250b) worth of Naver shares to hold a combined 0.4%.
The two companies warmed ties after Shinsegae Group vice chairman Chung Yong-jin and Naver co-founder Lee Hae-jin agreed to collaborate in the e-commerce sector during a meeting in January.
The latest agreement comes as competition in South Korea's online retail sector is set to intensify after Coupang's debut on the New York Stock Exchange last week.
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