SK Networks preferred bidder for Tongyang Magic - source

Hyundai Department Store Co

28/09/2016 01:12

SEOUL, Sept 28 (Reuters) - SK Networks  001740.KS  was 
chosen as the preferred bidder to buy South Korean kitchen 
appliance maker and water purifier rental firm Tongyang Magic, a 
person familiar with the matter said on Wednesday.  
    SK Networks, whose business includes car rental, offered to 
buy Tongyang Magic for more than 600 billion won ($547.47 
million) - more than double the 279.9 billion won that owner 
NH-Glenwood Private equity consortium paid for it just two years 
ago, Korean Economic Daily reported. 
    "SK Networks sees growth in the rental business," the source 
told Reuters on condition of anonymity because of the 
confidentiality of the deal.  
    A Tongyang Magic spokesman was not immediately available to 
comment. 
    Tongyang Magic's leasing business is attractive because it 
generates a stable cash flow as the number of single households 
rises, analysts say. But competition is rising with new players 
joining the business. 
    SK Networks is an affiliate of South Korea's third-biggest 
conglomerate SK Group. An SK Network spokesman was not 
immediately available to comment. 
    Other bidders include a joint offer from Hyundai Department 
Store Co Ltd  069960.KS  and Hyundai Home Shopping Network Corp 
 057050.KS , plus consortiums led by Unid Co Ltd  014830.KS  and 
AJ Networks Co Ltd  095570.KS . ($1 = 1,095.9500 won) 
 
 (Reporting by Hyunjoo Jin; Additional reporting by Joyce Lee; 
Editing by Stephen Coates) 
 ((hyunjoo.jin@thomsonreuters.com; 82-2-3704-5685; Reuters 
Messaging: hyunjoo.jin.thomsonreuters.com@reuters.net)) 
 
Keywords: TONGYANG MAGIC M&A/SK NETWORKS