Shinsegae and Lotte bid for eBay Korea buyout

SK Telecom and MBK Partners reportedly dropped out of the race.

Shinsegae and Lotte Shopping have submitted their bids to take over eBay Korea, Yonhap reported based on statements from retail industry sources.

According to the sources, the two retail giants submitted their letters of intent (LOIs) for the Korean unit of eBay. SK Telecom and MBK Partners, which holds the largest stake in Homeplus, reportedly dropped out of the race to purchase eBay Korea.

The Monday bidding marks the second attempt by eBay Korea, with the first having fallen through in mid-May as the company anticipated a higher price. eBay is seeking at least $4.49b (KRW5t) for its Korean unit and is expected to announce a preliminary bidder this week.

eBay Korea, takes up about 12% of South Korea's e-commerce market after Naver's 18% and Coupang's 13%. Its revenue is estimated at $1.17b (KRW1.3t), with operating income at $76.35m (KRW85b).

Lotte and Shinsegae's market shares in the country's e-commerce sector are estimated at 5% and 3%, respectively. The takeover of eBay Korea could reshape the country's online retail segment, according to the sources.