[Featured Stock] Emart Rises on Starbucks Stake Acquisition

[Asia Economy Reporter Song Hwajeong] Emart is showing strength following news of additional acquisition of Starbucks Coffee Korea shares.

As of 9:45 AM on the 28th, Emart was trading at 170,000 KRW, up 3,500 KRW (2.1%) from the previous day.

On the previous day, Emart announced that it had decided to acquire 17.5% of Starbucks Coffee Korea shares to secure stable management control. The acquisition amount is 474.3 billion KRW, which is about 4.5% of its equity capital. After the acquisition, the shareholding ratio will be 67.5%.

This share acquisition is expected to highlight the value of Starbucks Coffee Korea. Jinhyup Lee, a researcher at Yuanta Securities, said, "Through the consolidation of Starbucks Coffee Korea, Emart's operating profit forecast for 2022 is expected to be revised upward from 620.7 billion KRW to 878.6 billion KRW, and for 2023, from 738 billion KRW to 1.03 trillion KRW, making it possible to expect consolidated operating profit of 1 trillion KRW in 2023." He added, "Above all, by confirming Starbucks Coffee Korea's performance at the operating profit level, the value of Starbucks Coffee Korea, which has not been properly evaluated so far, can be highlighted."