Kosdaq-listed Feelingk buys local luxury-brand goods importer at $6.5mn

South Korea’s Kosdaq-listed wireless Internet solution company Feelingk Co. has agreed to buy a full stake in the country’s luxury clothing and accessory importer La Prima at 7 billion won ($6.5 million) as part of efforts to diversify its business portfolio.

Feelingk said on Monday it has purchased a 100 percent stake in La Prima at 7 billion won - 51 percent from its affiliate GemVax Technology Co. and the remaining from others. To finance the deal, the wireless internet company will issue convertible bonds.

La Prima, the premium clothing and goods importer founded in 2012, has been selling clothing and accessories of 40 overseas luxury brands at its retail stores and other online shopping malls. Its revenue last year topped 40 billion won for the first time since its inception.

Feelingk’s decision to add the clothing and accessory import business comes as it is actively seeking for a new growth engine. It in May 2017 acquired Korea’s golf wear maker Creas F&C Co. to jump into the fashion business, and it expects that La Prima with solid distribution network would create great synergy with its golf wear brands including Pearly Gates, Ping and Fantom. Feelingk also plans to utilize its mainstay wireless mobile platforms and software solutions to foster the growth of its fledging fashion business.

Shares of Feelingk Tuesday ended 4.83 percent up at 3,580 won from the previous session.

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]