Yuanta to invest W200b in E-Land affiliate
[THE INVESTOR] Taiwan-based Yuanta Securities plans to invest 200 billion won in E-World, an affiliate of Korean retail giant E-Land Group, according to sources on Dec. 7.
The company will reportedly issue convertible bonds to receive the funds.
It plans to mainly use the funds to further expand its jewelry business through acquisitions. Last year, sales of it jewelry division amounted to 170 billion won, while posting 17 billion won operating profit.
E-Land Group plans to hand over its jewelry division -- comprising several budget brands like LLOYD, O.S.T and Clue -- to E-World and in return will receive part of the investment. The group hopes to redeem loans amounting to 200 billion won and 300 billion won, from private equity fund Anchor Equity Partners and Meritz Financial Group, respectively.
E-World which operates an amusement park in Daegu is the only listed entity of the group. Its sales last year reached 35 billion won with operating profit of 6.6 billion won. E-Land acquired the park in 2010.
By Song Seung-hyun (firstname.lastname@example.org)