E-Land signs binding MOU with private equity fund KKR

Korean retail giant E-Land said Wednesday it has signed a binding memorandum of understanding (MOU) with U.S.-based private equity fund KKR on Monday regarding the sale of the retailer’s hypermarket franchise Kim’s Club, which has 37 branches nationwide.

“Based on the credible relationship we have built with KKR, we have signed a binding MOU with them,” E-Land said through a statement Wednesday.

“By moving into negotiations, we will find a way to generate synergy effect,” it added.

The two will discuss the sale value as well as details of the acquisition over the next month.

E-Land, one of the leading retail groups in Korea, has been experiencing a continuous downgrade in its credit ratings and rise in its debt ratio.

The group said it aims to lower the debt ratio to 200 percent from what is reported to have reached 300 percent recently.

To improve its situation, the retail giant has been putting some of its key businesses on the open market.

Along with Kim’s Market, E-Land has also been considering selling Gangnam branch of its department store brand New Core and Chinese division of its fashion label Teenie Weenie.