Oasis Market, New Owner of 11st? "Acquisition Under Review"

Oasis Side "Cannot Prematurely Judge"

Oasis, which operates the dawn delivery specialized platform Oasis Market, is considering the acquisition of the native e-commerce platform 11st.

Oasis announced on the 3rd that it is reviewing the acquisition of 11st. Founded in 2011, Oasis is an eco-friendly fresh food sourcing company that sells eco-friendly organic products directly from producers to consumers. In 2018, it launched the Oasis Market platform and started dawn delivery of fresh food. An Oasis Market representative explained, "It is true that we are currently reviewing the acquisition of 11st," but added, "Since the details have not yet been finalized, we cannot prematurely speculate on the acquisition."

Oasis Market headquarters exterior.
[Photo by Oasis Market]

11st is currently undergoing a sale process led by financial investors (FI). SK Square, the parent company of 11st, received a 500 billion KRW investment from FI in 2018 on the condition of an initial public offering (IPO) within five years. At that time, SK Square included a 'call option (right of first refusal)' requiring repayment of the investment if the IPO was not completed within the deadline. If SK Square waived the call option, FI could sell 11st to a third party, including SK Square’s shares.

Subsequently, as SK Square waived the call option in November last year, 11st has entered a forced sale process. At the end of last year, negotiations for equity investment with Qoo10, a Singaporean company owning TMON and WEMAKEPRICE, were held but ended in failure.

11st recorded an operating loss of 19.5 billion KRW in the first quarter of this year, improving 38.7% compared to 31.8 billion KRW in the first quarter of last year. However, sales decreased by 20.8% to 171.2 billion KRW from 216.3 billion KRW in the same period last year. On an annual basis, the operating loss last year was 125.8 billion KRW, reducing the deficit by 17% compared to 151.5 billion KRW the previous year. During the same period, sales increased by 10% year-on-year to 865.5 billion KRW.

Oasis Market achieved its highest quarterly performance in the first quarter of this year. According to Oasis’s quarterly report, Oasis Market recorded consolidated sales of 128.9 billion KRW and an operating profit of 6.2 billion KRW in the first quarter of this year. Sales in the first quarter increased by 12% compared to 114.7 billion KRW in the first quarter of last year, and operating profit grew by 567% compared to 900 million KRW in the same period last year.