April 20, 2024

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[THE INVESTOR] Toys R Us, which is in process of liquidating its business in the US, will sell 85 percent stake of its unit in Asia, according to news reports on April 3.

Toys R Us has reportedly hired global financial advisory firm Lazard as the merger and acquisition consulting company. Industry watchers expect that the deal will be worth around US$1 billion. 

According to the industry source, Toys R Us is currently reviewing the bidders who have been shortlisted to acquire the company’s unit in Asia. Hong Kong-based retail giant Li &Fung, which currently owns 15 percent stake in Toys R Us Asia, is currently considered as the most likely candidate for acquiring the firm.

Lotte Shopping currently has a license for operating around 40 Toys R Us outlets in Korea. However, the sources say that it is unlikely for the Korean firm to acquire Toys R Us Asia, since the portion of the business in Korea is relatively small.

Toys R Us currently runs 430 stores in Asia and its sales reached 1.65 billion won in 2016.

By Song Seung-hyun (ssh@heraldcorp.com)