Share prices of E-World and Deconetishion surpassed the 15 percent daily growth ceiling on Tuesday and Wednesday on news that their parent company E-Land Group has succeeded in attracting prominent investment from Wanda Group, China’s largest cultural enterprise.
“Investments from the Chinese Group, led by China’s richest man Wang Jianlin, into E-Land have given a green light to the share prices of the two affiliates that had once been isolated in the capital market, ’’ Kiwoom Securities said in a report.
E-World and Deconetishion are the only two listed firms of E-Land Group, a mid-tier retailor in Korea that specializes in fashion and retail.
Shares of E-World, which runs a theme park in Daegu, jumped 14.56 percent to 1,015 won. Shares of Deconetishion, E-Land fashion business arm, soared 14.56 percent to 1,100 won.
Market watchers raised their outlook on shares of E-World as the Wanda Group chairman promised ”unlimited’’ investments in leisure-related development projects planned by E-Land.
Rumors of E-Land building a hotel and other amusement facilities in E-World to attract Chinese tourists to the Gyeongsang provinces are already sparking activity in the market.
Wanda Group’s trust in E-Land is essentially based on the retailer’s demonstrated success in the Chinese market.
E-Land Group is performing better in China than bigger rivals such as Shinsegae, Lotte and CJ. Its sales in the country reached 2.3 trillion won ($2.2 billion) in 2013.
The deal was also backed by the decade-long friendship between the Chinese superrich and vice chairwoman E-Land Park Sun-kyung.
“The top management of E-Land and Wanda have developed a win-win partnership over the past 10 years,” an E-Land official said.
“With the latest investment deal, the two companies will seek shared growth as close partners not only in leisure but also other retail sectors like travel.”
By Seo Jee-yeon (
jyseo@heraldcorp.com)
