E-Mart to Launch Tender Offer for Shinsegae Food Shares: "Full Acquisition to Be Followed by Delisting"

Tender Offer Set at 48,120 Won per Share
Open for 22 Days Until January 5 Next Year
"Addressing Undervaluation and Enhancing Shareholder Value"

E-Mart announced on December 15 that its board of directors had approved a tender offer for shares of its subsidiary, Shinsegae Food, at a meeting held on December 11.

The tender offer price is set at 48,120 won per share, which is 20% higher than the closing price of 40,100 won on December 12, the last trading day before the offer period. The tender offer will be open for a total of 22 days, from today until January 5 of next year.

E-Mart Headquarters, Sunhwa-dong, Jung-gu, Seoul. Photo by Jo Yongjun

E-Mart, which currently holds a 55.47% stake in Shinsegae Food, stated that through this tender offer it plans to acquire all outstanding shares, make Shinsegae Food a wholly owned subsidiary, and subsequently delist the company by following the procedures and methods permitted by relevant laws and regulations.

The company explained that the purpose of this tender offer is to address the structural undervaluation of Shinsegae Food in the stock market, where its corporate value has not been fully reflected, and to enhance shareholder value by giving minority shareholders an opportunity to recover their investments at a premium above the market price.

Additionally, E-Mart noted that this move aligns with the government’s corporate value-up policy, aims to resolve the issue of dual listings, and seeks to simplify the ownership structure to increase transparency in corporate operations. The company also plans to address liquidity constraints resulting from low trading volumes and help shareholders recover their funds at a fair price.

An E-Mart representative stated, “By making Shinsegae Food a wholly owned subsidiary, we will unify the decision-making structure and establish a system that enables faster and bolder management decisions. We plan to maximize synergies and pursue mid- to long-term business restructuring, free from the costs of maintaining a listing and the pressure of performance fluctuations.”