Korea Seven, the South Korean operator of convenience store giant 7-Eleven, has decided to merge the convenience store chain subsidiary Buy The Way and automatic teller machine operator Lotte PS Net.
The merger will be complete by January 2020, according to a regulatory filing on Oct. 29.
Following the merger of the three privately held companies, Korea Seven will become the sole surviving entity, whose 79.66 percent stake will be owned by the Lotte conglomerate’s Korean holding firm Lotte Corp.
Korea Seven has owned the entire stake in Buy The Way since an acquisition worth 250 billion won ($214.5 million) in 2010. It also holds a 94.94 percent stake in Lotte PS Net.
The exchange ratio for the merger is fixed at Korea Seven’s 10 million shares valued at 10,486 won per share for 954 Lotte PS Net shares valued at 1 won each.
Korea Seven said the merger is meant to improve company governance structure, boost efficiency in convenience store chain operation, achieve economies of scale and create synergy between convenience stores and ATMs.
Korea Seven operates the third-largest convenience store chain here with a quarter of the market share as of end-2018, trailing GS25 and CU. Buy The Way’s market share stood at 1 percent.
By Son Ji-hyoung (email@example.com)