Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

Shinsegae Information & Communication Co / Event-Driven

<ul>
<li>In the past two years, E Mart Inc (139480 KS) has announced two tender offers of its affiliates including Shinsegae E&amp;C (September 2024) and Shinsegae Food (031440 KS) (December 2025).</li>
<li>We believe the next target of a tender offer by E-Mart could be Shinsegae Information &amp; Communication Co (035510 KS) in 2026/2027. </li>
<li>We provide three main reasons why E-Mart may try to conduct a tender offer of Shinsegae I&amp;C in 2026/2027.</li>
</ul>


In the past two years, E Mart Inc (139480 KS) has announced two tender offers of its affiliates including Shinsegae E&amp;C (September 2024) and Shinsegae Food (031440 KS) (December 2025).
We believe the next target of a tender offer by E-Mart could be Shinsegae Information &amp; Communication Co (035510 KS) in 2026/2027. 
We provide three main reasons why E-Mart may try to conduct a tender offer of Shinsegae I&amp;C in 2026/2027.


Shinsegae I&C - The Next Tender Offer Target by E-Mart?

<ul>
<li>On 15 December, it was announced that E Mart Inc (139480 KS) is conducting a tender offer and delisting of Shinsegae Food (031440 KS).</li>
<li>Tender offer price is 48,120 won (20% higher than the closing price on 12 December).</li>
<li>Shinsegae Food is currently trading at very low valuations. It is trading at P/E of 5.3x, P/B of 0.4x, and EV/EBITDA of 1.5x based on 2026 consensus earnings estimates.</li>
</ul>


On 15 December, it was announced that E Mart Inc (139480 KS) is conducting a tender offer and delisting of Shinsegae Food (031440 KS).
Tender offer price is 48,120 won (20% higher than the closing price on 12 December).
Shinsegae Food is currently trading at very low valuations. It is trading at P/E of 5.3x, P/B of 0.4x, and EV/EBITDA of 1.5x based on 2026 consensus earnings estimates.


A Tender Offer and Delisting of Shinsegae Food by E-Mart

External broker reports(aggregated public sources), Daishin Securities

Daishin Securities

External broker reports(aggregated public sources)

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Equity Bottom-Up

<ul><li>Marked profit improvement on discount store GPM gains and SG&amp;A savings</li><li>Construction losses narrowed; Property profit surged on accounting changes</li><li>Same-store recovery remains elusive, but improved profit level is encouraging</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Marked profit improvement on discount store GPM gains and SG&amp;A savingsConstruction losses narrowed; Property profit surged on accounting changesSame-store recovery remains elusive, but improved profit level is encouragingContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Emart (139480 KS) - Discount Store Cost Cuts, Improved Subsidiary Performance Drive Surprise

<ul>
<li>In this insight, we discuss about the growing importance of ACT, the largest minority shareholders platform (<a href="https://www.act.ag/" target="_blank" rel="noopener">https://www.act.ag/</a>) in Korea with nearly 100,000 members and market share of more than 50%. </li>
<li>Recently, ACT has been demanding corporate governance improvements on the following companies: E-Mart, DB Hitek, Lotte Shopping, Youlchon Chem, Hanmi Science, and Solu-M. </li>
<li> ACT has played an important role in the recent shareholder return polices announced by E-Mart which announced a sharply higher total shareholder return policy including higher dividends and share cancellations. </li>
</ul>


In this insight, we discuss about the growing importance of ACT, the largest minority shareholders platform (https://www.act.ag/) in Korea with nearly 100,000 members and market share of more than 50%. 
Recently, ACT has been demanding corporate governance improvements on the following companies: E-Mart, DB Hitek, Lotte Shopping, Youlchon Chem, Hanmi Science, and Solu-M. 
 ACT has played an important role in the recent shareholder return polices announced by E-Mart which announced a sharply higher total shareholder return policy including higher dividends and share cancellations. 


Growing Importance of ACT - Korea's Largest Minority Shareholders Platform

<ul>
<li>E Mart's Chairman Chung Yong-Jin will receive the entire 10% shares of E Mart held by his mum Lee Myung-Hee.</li>
<li>After this transaction, Chung Yong-Jin will become the largest shareholder in E Mart with a 28.6% stake in the company.</li>
<li>This is likely to positively impact E Mart. In Korea, when the final major ownership stake is transferred, there is often a positive boost to the share price.</li>
</ul>


E Mart's Chairman Chung Yong-Jin will receive the entire 10% shares of E Mart held by his mum Lee Myung-Hee.
After this transaction, Chung Yong-Jin will become the largest shareholder in E Mart with a 28.6% stake in the company.
This is likely to positively impact E Mart. In Korea, when the final major ownership stake is transferred, there is often a positive boost to the share price.


Chung Yong-Jin Will Receive 10% of E Mart Shares from His Mum to Become the Controlling Shareholder

South Korea

E-MART Inc. operates E-Mart discount stores. The Company retails food, clothing, household goods, electronics, and other items through several branch stores.

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E Mart Inc (139480 KS)

Shinsegae I&C - The Next Tender Offer Target by E-Mart?

E-Mart Inc has announced two tender offers in the past two years. We provide three main reasons why E-Mart may target Shinsegae I&C next for...

Douglas Kim

A Tender Offer and Delisting of Shinsegae Food by E-Mart

On 15 December, it was announced that E Mart Inc (139480 KS) is conducting a tender offer and delisting of Shinsegae Food (031440 KS).

Douglas Kim

Emart (139480 KS) - Discount Store Cost Cuts, Improved Subsidiary Performance Drive Surprise

Marked profit improvement on discount store GPM gains and SG&A savings. Construction losses narrowed; Property profit surged on accounting changes

Daishin Securities

Growing Importance of ACT - Korea's Largest Minority Shareholders Platform

In this insight, we discuss about the growing importance of ACT, the largest minority shareholders platform (https://www.act.ag/) in Korea with...

Douglas Kim

Chung Yong-Jin Will Receive 10% of E Mart Shares from His Mum to Become the Controlling Shareholder

E Mart's Chairman Chung Yong-Jin will receive the entire 10% shares of E Mart held by his mum Lee Myung-Hee. Chung Yong-Jin will become the largest...

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Shinsegae I&C - The Next Tender Offer Target by E-Mart?

​E-Mart Inc has announced two tender offers in the past two years. We provide three main reasons why E-Mart may target Shinsegae I&C next for...

Douglas Kim

A Tender Offer and Delisting of Shinsegae Food by E-Mart

On 15 December, it was announced that E Mart Inc (139480 KS) is conducting a tender offer and delisting of Shinsegae Food (031440 KS).

Douglas Kim

Emart (139480 KS) - Discount Store Cost Cuts, Improved Subsidiary Performance Drive Surprise

Marked profit improvement on discount store GPM gains and SG&A savings. Construction losses narrowed; Property profit surged on accounting changes

Daishin Securities

Growing Importance of ACT - Korea's Largest Minority Shareholders Platform

In this insight, we discuss about the growing importance of ACT, the largest minority shareholders platform (https://www.act.ag/) in Korea with...

Douglas Kim

Chung Yong-Jin Will Receive 10% of E Mart Shares from His Mum to Become the Controlling Shareholder

E Mart's Chairman Chung Yong-Jin will receive the entire 10% shares of E Mart held by his mum Lee Myung-Hee. Chung Yong-Jin will become the largest...

Douglas Kim

E-Mart Inc has announced two tender offers in the past two years. We provide three main reasons why E-Mart may target Shinsegae I&C next for...