[THE INVESTOR] Korea’s top home shopping channel operator CJ O Shopping has started its due diligence of Slovenia-based e-commerce firm Studio Moderna, according to industry sources on May 30.
The Korean home shopping giant announced on April 24 that it was interested in acquiring Studio Moderna. It declined to confirm any details, saying nothing has been decided yet.
The Slovenian firm had recently chosen CJ O Shopping as the preferred bidder, which will decide on the acquisition price and amount of stake after its due diligence. According to industry watchers the Korean firm is likely to acquire the entire stake, which would cost around 300 billion won (US$277.62 million) to 400 billion won.
CJ said it became interested in Studio Moderna due to its unique business model.
The Slovenian company currently owns diverse retail channels including, telemarketing, TV home shopping and online shopping portal. Moreover, it also owns some brands such as bedding brand Domeo, kitchenware brand Deliman, cosmetics brand Pink Panda and shoes brand Walkmaxx. “The acquisition plan is mainly aimed at business diversification,” a CJ O Shopping spokesperson told The Investor.
Studio Moderna was established in 1992 and primarily operates across Central and Eastern Europe. Its sales in 2016 reportedly reached 50 million euros (US$57.70 million), which increased 18 percent from the previous year.
CJ O Shopping is the largest home shopping firm in Korea posting sales of 2.22 trillion won with operating profit reaching 224 billion won last year.
By Song Seung-hyun (ssh@heraldcorp.com)