Korean electronics appliance retailer Hi-mart has tapped Lotte Shopping as preferred bidder after its first choice – private equity firm MBK Partners – withdrew.

MBK Partners, was chosen as preferred bidder on June 25, but has reportedly withdrawn its offer after learning more about the company’s current state. 

“Lotte was tapped because private equity firm MBK Partners opted not to bid for Hi-mart,” a company representative said.

Lotte Shopping, run by conglomerate Lotte Group, will be acquiring a combined 65.25 per cent valued at more than US$1 billion. 

Investors are happy having Lotte Shopping as the new preferred bidder as they say it will bring the best synergies to the company.

While Lotte said it was too early to determine whether a formal agreement will be settled, it said both sides want the deal to proceed.

Lotte Shopping currently operates 527 stores across the country including 96 large discount stores, while Hi-mart runs 314 stores.

GB