South Korean e-commerce platform Tmon will raise money from multiple financial investors, including local private equity firm PS Alliance (PSA), KKR and Anchor Equity Partners, industry sources said on Monday (February 22).
Financial investors will buy exchangeable bonds issued by a new entity and the proceeds will be injected into Tmon’s rights offering. Exchangeable bonds will be swapped with Tmon’s common shares and investors plan to convert them through Tmon’s initial public offering (IPO). Tmon selected Mirae Asset Daewoo to lead the offering, which will take place as early as this year.
PSA, which originally planned to invest 250 billion won ($225 million) in Tmon through its project fund, will invest around 180 billion won. Tmon’s existing shareholder KKR and Anchor Equity will invest 80 billion won by purchasing exchangeable bonds.
Tmon reportedly plans to raise another 70 billion won to 80 billion won from a new global financial investor. The company will likely raise about 260 billion won from PSA and existing shareholders first and secure an additional 70 billion won later.
Tmon had to increase its capital base by 400 billion won to resolve a capital deficit issue for its planned IPO, so the proceeds from the latest fundraising will be injected into the company through a paid-in capital increase.
Founded in 2010 as the country’s first social commerce provider, Tmon transformed itself into a leading ecommerce platform. Tmon will use the money raised from the deal for the so-called Time Commerce, a marketing concept that relies on selling products at bargain prices during certain hours, to increase its membership.
Kim & Chang and Samjong KPMG acted as legal and financial advisors to the seller, while Yulchon and Samil PwC acted as legal and financial advisor to the acquirer. (Reporting by Ar-rum Rho)