Emart makes plans to absorb Emart Everyday

[Photo by Yonhap]

South Korean retail giant Emart plans to merge with its supermarket chain Emart Everyday in a move aimed at enhancing overall profitability while creating synergy in logistics. This decision comes amid efforts to address performance challenges since Jung Yong-jin’s inauguration as the chairman of the Shinsegae Group, which oversees Emart.

On Tuesday, both Emart and Emart Everyday announced resolutions passed by their respective boards to merge the two entities. The merger agreement is scheduled for April 30th, 2024, and the integration of Emart’s corporate registration is expected to be completed by July 1st, following the announcement and subsequent hearings for shareholder and bondholder opinions.

The merger sees Emart absorb Emart Everyday, with the former currently holding a 99.3 percent stake in the latter. The duo opted for a streamlined merger process, bypassing the need for a shareholders’ meeting, and proceeding directly to board approval in accordance with legal provisions.

Emart plans to compensate Emart Everyday’s minority shareholders with a merger cash out calculated at a fair value. The transaction will not involve any issuance of new shares.