Shinsegae Food Co., Ltd. agreed to acquire Shinsegae SVN Co., Ltd. from Shinsegae Chosun Hotel Corp for KRW 38.7 billion.
August 17, 2014
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Shinsegae Food Co., Ltd. (KOSE:A031440) agreed to acquire Shinsegae SVN Co., Ltd. from Shinsegae Chosun Hotel Corp for KRW 38.7 billion on August 18, 2014. Shinsegae Food will issue 0.3699991 for every one share in Shinsegae SVN Co., Ltd. and a total of 0.44 million new shares will be issued for the merger. Shinsegae SVN will be dissolved and Shinsegae Food Co., Ltd. will be the surviving entity after the merger. Shinsegae SVN Co., Ltd had revenues of KRW 236.49 billion ($225 million), operating profit of KRW 5.26 billion ($5 million), net income of KRW 3.15 billion ($3 million), total assets of KRW 83.04 billion ($79 million) and net assets of KRW 24.17 billion ($23 million) for the year ended December 31, 2013. The transaction is resolved by the Board of Shinsegae Food Co., Ltd. The acquisition is subject to approval by shareholders of Shinsegae Food Co., Ltd.
As of September 5, 2014, Shinsegae Food amended the exchange ratio and will issue 0.3699007 shares for every one share in Shinsegae SVN Co., Ltd. resulting in a total of 0.44 million new shares to be issued for the merger. The deal is expected to close with effective date of December 1, 2014. As of October 27, 2014, Shinsegae Food Co., Ltd.'s shareholders approved the transaction. KPMG acted as fairness opinion provider to Shinsegae Food. The conversions were done through www.oanda.com.
Shinsegae Food Co Ltd is a Korea-based company mainly engaged in the distribution of food and ingredients. The Company operates its business through three segments. The Manufacturing Service segment engages in group catering business, restaurant business, bakery business, and food manufacturing business. The group catering business provides meals to dormitories, school hospitals and enterprises. The restaurant business provides food and beverages. The bakery business provides bakery products to customers at shopping facilities such as department stores and E-Mart. The food manufacturing business produces and sells products such as Korean food, Western food, ethnic food, and snacks. The Purchase and Distribution segment distributes ingredients and products that the company manufactures and processes. The Other segment engages in food logistics business. In addition, the Company manufactures and sells frozen dumplings, mineral water, meat, sauces, fruit drinks, and food.
SHINSEGAE FOOD INC. 
