Lotte Shopping to invest ￦299.5 billion in Hanssem bid
Lotte Shopping is investing 299.5 billion won ($260 million) as part of a bid to acquire a stake in Hanssem, Korea’s largest furniture company.
Lotte Shopping announced Thursday it is joining IMM Private Equity, a Gangnam-based group, to acquire a stake in Hanssem worth roughly 30 percent.
IMM Private Equity agreed in July to buy nearly a third of Hanssem from Cho Chang-geol, the company’s CEO, and seven other affiliated parties.
The exact percentage of the purchase has not been disclosed, but local media reports put the total amount being offered to IMM at 30.21 percent for 1.5 trillion won.
Lotte Shopping said having a stake in Hanssem could invite more people to come to its offline retail stores, which includes department stores and outlets.
The company added that synergy effects are expected from the collaboration with various Lotte companies, including Lotte Himart.
Lotte Shopping already operates the Korean branches of British high-end furniture brand The Conran Shop.
Lotte Shopping's rivals also operate furniture brands.
Hyundai Green Food, which owns 12 percent of Hyundai Department Store, owns 41.2 percent of Hyundai Livart, while Shinsegae Department Store operates Casamia, both furniture brands.
BY JIN MIN-JI [firstname.lastname@example.org]