Japan's FamilyMart to exit South Korea

Posted at 04/03/14 10:32 AM

SEOUL - Japan's FamilyMart Co Ltd plans to exit South Korea by offering up to 283 billion won ($268 million) of shares in an initial public offering of the country's biggest convenience store chain in May, a BGF Retail spokesman said on Thursday.

BGF Retail said in a statement late on Wednesday that it would offer FamilyMart's 25 percent stake at between 41,000 won and 46,000 won each, valuing the company at around 1.1 trillion won.

FamilyMart entered South Korea in 1990 through a franchise licensing agreement with Bokwang Group. The business was renamed BGF Retail in 2012.

BGF CEO Hong Seok-joh and 34 other related shareholders such as family members hold a total of 65.9 percent of BGF.

BGF Retail's convenience store chain, called CU, had 7,939 stores as of end-2013, and reported 3.13 trillion won in revenue and 105 billion won in operating profits last year.