Hanwha's resort unit to buy food service company Ourhome for 870 bln won

SEOUL, Feb. 11 (Yonhap) -- Hanwha Hotels & Resorts Co., a unit of South Korean conglomerate Hanwha Group, said Tuesday it is acquiring a major local ready-to-eat meals supplier for 869.5 billion won (US$598.6 million) as part of efforts to bolster its food service business.

Hanwha Hotels said in a regulatory filing that it signed a stock purchase agreement to acquire Ourhome Co. from Koo Bon-seong and Koo Mi-hyun, members of the controlling Koo family, and two other related shareholders.

Under the deal, Hanwha Hotels will be taking over a 58.62 percent stake in Ourhome, representing some 13.4 million shares, it said.

Hanwha Hotels plans to buy 50.62 percent first, with an initial investment of 250 billion won to be made on April 29. The remaining 8 percent, held by Koo Bon-seong, former Ourhome vice chairman, will be purchased through a third party in due course under terms agreed upon by both sides, the company said.

It plans to raise the rest of the acquisition amount from a financial investor. It has reportedly been in talks with IMM Credit & Solutions, a private equity firm, to raise about 250-300 billion won.

The acquisition of Ourhome has been marred by a family feud as Koo Ji-eun, former Ourhome vice chairman and sister of Bon-seong and Mi-hyun, has opposed the sale. She is likely to file for a court injunction to block the takeover move.

Ourhome, spun off from South Korea's LG Group in 2000, is a leading supplier of ready-to-eat meals and ingredients, mainly to companies and schools. It also provides catering services and exports food distribution solutions, such as cafeterias.

Hanwha Hotels, whose primary business includes its nationwide resorts and hotels, is run by Kim Dong-seon, a son of Hanwha Group Chairman Kim Seung-youn.

elly@yna.co.kr
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