By Lisa Kerner
Charlotte, N.C., April 16 - eBay Inc. agreed to acquire all of the outstanding common shares and American Depositary Shares of Gmarket Inc. in a cash tender offer valued at up to approximately $1.2 billion, a joint news release said.
eBay will pay $24 per Gmarket share and ADS.
Gmarket investor Interpark Corp. and its chairman, Ki Hyung Lee, agreed to tender their approximately 34% interest in the offer.
The transaction, which is conditioned on the tender of a majority of the outstanding shares and ADSs, is expected to close in the second quarter of 2009.
eBay, a San Jose, Calif., online marketplace, said it will combine Gmarket's operations with eBay's existing Korean marketplace business, Internet Auction Co.
IAC president Jooman Park and Gmarket president Young Bae Ku will jointly lead the combination of IAC and Gmarket.
"The combination of Gmarket and IAC establishes an exceptionally strong leadership position for eBay in one of the world's largest, most dynamic and innovative e-commerce markets," eBay president and chief executive officer John Donahoe said in the release.
eBay said it will be able to offer Gmarket and IAC sellers tools for quick, simultaneous listings across both platforms. Buyers will benefit from improved selection, incentives and loyalty programs, according to eBay.
"This transaction will provide us an excellent opportunity for our next growth stage in Korea and will also help accelerate our expansion strategies beyond Korea," Ku said in the release.
Gmarket, based in Seoul, South Korea, operates a retail e-commerce marketplace.
| Acquirer: | eBay, Inc.
|
| Target: | Gmarket Inc.
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| Announcement date: | April 15
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| Transaction total: | $1.2 billion
|
| Price per share: | $24.00
|
| Expected closing: | Second quarter of 2009
|
| Stock price of target: Nasdaq: GMKT: $19.34 on April 14
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