South Korea's Netmarble preferred bidder for Woongjin Coway stake (updated)

Woongjin Co

14/10/2019 03:03

(Updates throughout with more detail on sale, value, share
price, comment)
    SEOUL, Oct 14 (Reuters) - South Korean gaming firm Netmarble
 251270.KS  said on Monday it has been chosen as the preferred
bidder for a 25% stake in water purifier rental firm Woongjin
Coway  021240.KS , sending shares in Woongjin's top shareholder
higher.
    The stake is valued at 1.5 trillion won ($1.27 billion)based
on Woongjin Coway's current share price. 
    Woongjin Thinkbig  095720.KS , Woongjin Coway's biggest
shareholder, did not disclose further details, saying specific
negotiation terms would be discussed with the preferred bidder.
    Netmarble, which controls more than a quarter of South
Korea's mobile gaming market, has been expanding into non-core
businesses to secure new growth avenues. It last year purchased
a 26% stake in Big Hit Entertainment, the management firm for
popular Korean boy band, BTS, for about $170 million.
    Analysts have said purchasing a stake in Woongjin Coway,
which rents water purifiers, air purifiers and bidets, should
help generate stable cash flow for the gaming firm, but
questioned whether there would be synergies.
    Woongjin Thinkbig shares were up 19.5% at 0114GMT, while
Netmarble shares dipped 0.4%.
    The proposed purchase would be the first major deal by
Netmarble after its botched attempt to buy crosstown rival Nexon
 3659.T  earlier this year. Nexon scrapped that potential $16
billion deal, which would have been the gaming sector's biggest.
 urn:newsml:reuters.com:*:nL4N24A0S2
    Woongjin Group had announced in June that it planned to sell
a 25.08% stake in Woongjin Coway, just three months after the
group regained control of the unit for 1.89 trillion won ($1.60
billion).  urn:newsml:reuters.com:*:nL4N23X5D5
($1 = 1,184.3800 won)

 (Reporting by Hyunjoo Jin and Ju-min Park;  Editing by
Muralikumar Anantharaman and Jane Wardell)
 ((hyunjoo.jin@thomsonreuters.com; 82-2-3704-5685; Reuters
Messaging: hyunjoo.jin.thomsonreuters.com@reuters.net))