NS Shopping of Harim Group has been named the preferred bidder in the open auction for Homeplus Co. Express. Observers say Harim Group's push to maximize synergies across food, logistics, and retail is likely to gain speed.
Homeplus Co. said on the 21st, "As a result of the open auction for Homeplus Co. Express, we decided to designate NS Shopping of Harim Group as the preferred negotiation partner."
Homeplus Co. added, "We plan to swiftly conclude negotiations on the details and sign the main contract."
With the preferred bidder selected on the day of the final bid deadline for the sale of Homeplus Co. Express, the corporate workout of Homeplus Co. under MBK Partners has cleared a major hurdle. The sale of Homeplus Co. Express is one of the core components of the Homeplus Co. turnaround plan.
The market had estimated the value of Homeplus Co. Express at about 300 billion won, but the actual sale price is said to likely fall short of that.
Industry watchers say Harim could use the 289 Homeplus Co. Express stores, concentrated in the Seoul metropolitan area, as dedicated outlets for fresh food and ready-made meal kits.
Homeplus Co. Express is also expected to create synergies with various new businesses Harim is pursuing. Harim aims to evolve beyond the broiler sector into a comprehensive food company encompassing processed foods broadly, including premium home meal replacements (HMR).
The industry also expects synergy between Homeplus Co. Express and the offline channel of NS Home Shopping, an affiliate of Harim. About 76% of Homeplus Co. Express stores can provide quick commerce delivery. It is also expected to compete in fresh food sales with e-commerce leaders such as Kurly and Coupang.