The funding from the Asian companies Affinity Equity Partners and BRV Capital Management will help the two retailers invest in ecommerce and online grocery services. Shares in both companies soared to six-year highs on the preliminary deal with E-Mart jumping 14% to see its market capitalisation hit USD 7.6 billion, while Shinsegae gained 7% to be valued at USD 3.1 billion.
Under the agreement, the two retailers will combine their online business units to launch a separate company in 2018. The private equity companies will invest WON 1 trillion by either purchasing new shares or by other methods.
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