South Korean department store operator Shinsegae has revealed that it has negotiated a 1.1% discount on the price of acquiring Wal-Mart’s South Korean operations.
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Shinsegae originally announced its intention to buy a 100% stake in the US chain’s 16 South Korean outlets in September 2006, when it paid Wal-Mart KRW825bn (US$825m) for its operations in South Korea. Shinsegae said that it intended to operate them under the umbrella of its E-Mart banner.
However, Wal-Mart refunded 1.1% of the purchase price when it came to light that its subsidiary’s working capital was considerably lower than earlier estimates had indicated. After the refund, Shinsegae paid a total consideration of KRW816.19bn.
