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The sale of Yogiyo, which is attracting attention as a trillion-unit merger and acquisition (M&A), is in full swing.
According to the investment banking industry (IB) on the 15th, Germany’s Delivery Hero (DH) recently sent an investment guide to Delivery Hero Korea, a Yogiyo operator, to the original buyers via Morgan Stanley, the organizer. sales. The investment guide was sent to multiple strategic investors (SI) and financial investors (FI), and is said to have been sent intensively to domestic and foreign private equity fund (PEF) managers.
Yogiyo has attracted the attention of the IB industry as the second largest delivery app in Korea. According to Nielsen KoreaClick, Yogiyo ranked second in the domestic delivery app market in September last year with a 30% market share. It was only half of the 59.7% recorded by the first-place deliverers, but more than four times more than the 6.8% by the third-place Coupang Itz. Yogiyo posted a deficit in 2019, but it was turned into a surplus by the delivery boom triggered by Corona 19 last year, and the number of orders is known to continue to rise.
Consequently, many private equity fund managers and large national distribution companies are reviewing the value of the sale. In the private equity industry, several domestic and foreign managers who can buy trillions (assuming the management rights) are seriously analyzing this transaction, and among the SI, Coupang, Shinsegae, Uber and GS Retail are mentioned as candidates for the acquisition. . In particular, the fact that the online food delivery market is growing rapidly each year is interpreted as attracting the attention of original buyers. According to the National Bureau of Statistics, the amount of online food delivery transactions in Korea from 2.7 trillion won in 2017 has doubled every year to 17.38 trillion won last year. This is the background to the prospect of a market that can sufficiently share the fruits of growth for the second largest companies. However, some observers from the private equity industry say that it is difficult for financial institutions to step in and take over. Some say that the way the e-commerce market works, where it is important to increase your market share while risking losses, is not suitable for private equity managers who must maximize profit margins within 5-6 years. post-acquisition.
SI also has obstacles. One of the burdens is that if the acquisition is successful, you will have to compete with the seller immediately. There is concern that Delivery Hero, which has acquired the delivery nation, will know the pros and cons of Delivery Hero Korea, a Korean subsidiary, and will compete in the so-called sloping playground.
However, given the recent market atmosphere, the prediction that the Yogiyo acquisition will be a box office is dominant. This is because Coupang has been evaluated for its corporate value approaching 100 trillion won after listing on the New York Stock Exchange, and interest in domestic online trading companies is increasing. Several SIs and FIs are also rushing to participate in eBay Korea’s competitive bidding.
Furthermore, the synergy effects are expected to be high when Yogiyo’s delivery area expands not only to food but also to markets, cosmetics and medicines. That is why some people choose the mobility industry as a good industry group to create business and Yogiyo scalability. If delivery functions like food are added to mobility services, the market ripple effect is expected to be large. In fact, the private equity fund Texas Pacific Group (TPG), the main shareholder of Kakao Mobility, is known to be considering participating prior to the acquisition. The synergy effect is expected when Yogiyo settles on the Kakao T platform.
The price the seller wants is in the range of 2 trillion won, which is said to be around 8 times Yogiyo’s sales last year. In the IB industry, after the release of this teaser, it is expected that the preliminary bidding can continue after April after a series of processes, such as the signing of a confidentiality agreement (NDA) and the submission of an investment prospectus. (IM).
[강두순 기자 / 박창영 기자][ⓒ 매일경제 & mk.co.kr, 무단전재 및 재배포 금지]
