SAN JOSE, Calif., June 24, 2021 /PRNewswire/ -- eBay Inc.
(NASDAQ: EBAY) and Emart today announced they reached an agreement
for the purchase by Emart of eBay's businesses in Korea. Execution
of the fully negotiated and finalized purchase agreement is
contingent upon the Bank of Korea's acceptance of the filings
related to foreign exchange transactions. The form of the purchase
agreement, agreed upon by the parties, is subject to change only by
mutual agreement between eBay and Emart. Pursuant to the
transaction, eBay will sell an 80.01% stake in its Korean
businesses for 3.44 trillion KRW (or
approximately $3.0 billion
USD1) of gross cash proceeds.
"After a thorough strategic review and competitive sale process,
we are excited to come to an agreement with Emart," said
Jamie Iannone, Chief Executive
Officer, eBay. "This deal brings together two strong ecommerce and
retail companies that can unlock tremendous potential in Korea and
provide more choice for customers. We believe this move further
optimizes our portfolio and creates value for eBay
shareholders."
Together, eBay Korea and Emart can build a 360-degree ecosystem
which will allow full touch points with customers in categories
ranging from grocery to general merchandise. Over the next four
years, Emart plans to invest more than 1
trillion KRW in fulfillment centers. Offline stores will
also be utilized to serve as fulfillment centers, reinforcing
Shinsegae Group's supply chain management system. This will
enhance Emart's same-day delivery capabilities and improve
fulfillment centers' capacity utilization. For years the team has
been working on pre-emptive, strategic redeployment of its physical
property to digital assets, in preparation for a rapidly evolving
retail environment heightened by technology innovations.
During fiscal year 2020, eBay's off-platform businesses in Korea
contributed over $14 billion USD in
GMV, and approximately $1.4 billion
USD in revenue, with operating margins in the mid to high
single digit range. eBay plans to report these businesses as
discontinued operations going forward and will publish restated
historical financials prior to the next earnings release.
The transaction is expected to close by the end of the year or
early next year, subject to regulatory approvals.
Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC are
acting as financial advisors to eBay. Wachtell, Lipton, Rosen &
Katz and Kim & Chang are acting as legal advisors to eBay.
About eBay:
eBay Inc. (Nasdaq: EBAY) is a global
commerce leader that connects millions of buyers and sellers in 190
markets around the world. We exist to enable economic opportunity
for individuals, entrepreneurs, businesses and organizations of all
sizes. Founded in 1995 in San Jose,
California, eBay is one of the world's largest and most
vibrant marketplaces for discovering great value and unique
selection. In 2020, eBay enabled $100
billion of gross merchandise volume. For more information
about the company and its global portfolio of online brands,
visit www.ebayinc.com.
Forward-Looking Statements
Forward-Looking
Statements Certain statements herein are "forward-looking
statements" within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Exchange Act. Such
forward-looking statements are often identified by words such as
"anticipate," "approximate," "believe," "commit," "continue,"
"could," "estimate," "expect," "hope," "intend," "may," "outlook,"
"plan," "project," "potential," "should," "would," "will" and other
similar words or expressions. Such forward-looking statements
reflect eBay's current expectations or beliefs concerning future
events and actual events may differ materially from historical
results or current expectations. The reader is cautioned not to
place undue reliance on these forward-looking statements, which are
not a guarantee of future performance and are subject to a number
of uncertainties, risks, assumptions and other factors, many of
which are outside the control of eBay. The forward-looking
statements in this document address a variety of subjects
including, for example, the closing of the transaction and the
potential benefits of the transaction. The following factors, among
others, could cause actual results to differ materially from those
described in these forward-looking statements: the possibility that
regulatory and other approvals and conditions to the transaction
are not received or satisfied on a timely basis or at all; the
possibility that eBay may not fully realize the projected benefits
of the transaction; changes in the anticipated timing for closing
the transaction; business disruption during the pendency of or
following the transaction; diversion of management time on
transaction-related issues; the reaction of customers and other
persons to the transaction; and other events that could adversely
impact the completion of the transaction, including COVID-19 and
industry or economic conditions outside of our control. In
addition, actual results are subject to other risks and
uncertainties that relate more broadly to eBay's overall business,
including those more fully described in eBay's filings with the
Securities and Exchange Commission, including its annual report on
Form 10-K for the fiscal year ended December
31, 2020 and subsequent quarterly reports on Form 10-Q. The
forward-looking statements in this document speak only as of this
date. We undertake no obligation to revise or update publicly any
forward-looking statement, except as required by law.
1 Based on FX as of June
23, 2021; 1 USD = 1,135 KRW
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SOURCE eBay Inc.