Local retail giants prep up for eBay Korea bidding

The bidding marks the second attempt by eBay Korea.

Big-name bidders are believed to be carefully weighing how much to offer on the eve of bidding for eBay Korea, as the deal is expected to bring a seismic change to the local retail industry, Yonhap reported based on statements from industry sources.

Most of the preliminary bidders are expected to attend the bidding on 7 June Monday, including SK Telecom, Lotte Group, discount store franchise E-Mart, and MBK Partners, private equity firm and largest shareholder of discount store chain Homeplus, retail market observers said.

A consortium by multiple bidders is also a possibility, they said, amidst rumors that E-Mart and online portal operator Naver could join hands as they strengthened their business ties in March through a $221m (KRW250b) share swap.

The eBay Korea deal has drawn keen attention from the retail industry ever since the company first announced the M&A deal in January. The 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 known to be hoping for at least $4.50b (KRW5t) for the deal, whilst bidders think the bottom price is too high. "EBay Korea may be tempting for its ample experience and profitability, but 5 trillion won may be an overreach," a retail industry source said.