Oasis 'considering' purchase of struggling 11Street

Industry

Published: 05 Jul. 2024, 15:30 Updated: 05 Jul. 2024, 17:33

Oasis 'considering' purchase of struggling 11Street

Oasis headquarters in Gyeonggi [OASIS]

Oasis, a local operator of the grocery-focused online mall Oasis Market, is considering acquiring 11Street, an e-commerce affiliate of SK Group.

“It is true that Oasis is currently considering the acquisition [of 11Street] and that we have submitted the letter of intent,” Oasis told the Korea JoongAng Daily on Friday.

Oasis offered to exchange its unlisted shares for shares of 11Street, according to local media reports, although it declined to confirm.

Oasis canceled its plan to file an IPO in February 2023 citing the inability to “get proper market valuation” due to “global economic slowdown and negative investor sentiment.” Market observers predicted that the 11Street acquisition might aid a second IPO attempt.

While 11Street, commonly known as 11st, is the third largest e-commerce platform in Korea after Coupang and Gmarket but has been struggling in the face of steep competition over the past few years. Its sale price is reported to be 500 billion won ($362 million).

SK Square, the investment arm of SK Group that holds an 80.26 percent stake in 11Street, relinquished its call options on shares of the e-commerce operator, which would've allowed it to repurchase 18.18 percent of 11Street from investors, in November 2023. Nile Holdings, the firm's second-largest shareholder, subsequently exercised its drag-along rights, enabling the firm to force minority shareholders to comply with a future sale.

BY CHO YONG-JUN [cho.yongjun1@joongang.co.kr]