] E-Land Group is in talks with MBK Partners to sell its assets worth more than 1 trillion won (US$875.64 billion) including its restaurant franchises Ashley and Nature Kitchen, according to local media reports on April 9.
|E-Land's family restaurant chain Ashley|
The retail giant has awarded the country’s largest private equity management company exclusive rights to review and negotiate the price for its restaurant division, one of the two pillars of E-Land Park.
The sector posted close to 700 billion won revenue in 2016, accounting for most of the 805.4 billion won earnings of E-Land Park. It currently operates a total of 18 restaurant and café chains with 559 outlets across the country, including its flagship brand Ashley.
MBK Partners acquired hypermarket chain Home Plus in 2015 and might be seeking to create synergy with the restaurants and dessert chains, industry watchers say. It formed a US$4.1 billion blind fund at the end of last year and completed a 1.36 trillion won deal last month, taking over controlling stake of leading industrial supplier Daesung Industrial Gas.
The private deal will offer E-Land Group the much-needed cash injection as it pursues systematic restructuring before its subsidiary E-Land Retail goes public next year.
By Hwang You-mee (firstname.lastname@example.org