[
THE INVESTOR]
SK Networks is in the final stage of talks with
Hyundai Department Store to hand over its fashion division for a reported 300 billion won (US$267.76 million), according to news reports on Sept. 20.
SK Networks is part of SK Group that has its roots in Sunkyung Textiles, and its fashion division is the fifth largest by sales volume. It posted 565.2 billion won in revenue last year. In addition to its school uniforms unit, the company has a dozen fashion brands in the stable from established domestic brands Obzee and Steve J & Yoni P to international brands DKNY, Tommy Hilfiger and American Eagle.
However, it only accounts for 3 percent of the total revenue of the group which is streamlining the organization to focus on rental businesses. According to reports, there is some resistance to selling the division below its net worth of 346.2 billion won, especially when the telecom and trade divisions are yet to find new growth sources.
If the deal goes through, Hyundai Department Store will push off
Shinsegae International and become the top three in fashion industry along with
Samsung C&T’s fashion division and
LF.
At the request of Korea Exchange both the trading heavyweight and the department store giant issued regulatory filing acknowledging that they are reviewing sales and acquisition of the business but did not provide any specifics.
By Hwang You-mee (
glamazon@heraldcorp.com)
