Korea’s GS Home Shopping buys 15-per cent stake in HomeShop18
14 Nov 2009
GS Home Shopping Inc., a South Korean TV home shopping channel, yesterday signed a contract to buy a stake in HomeShop18, a venture of the Network18 Group, South Korea's official Yonhap news agency reported yesterday.
Under the contract, GS Home Shopping will purchase a 15 per cent stake in HomeShop18 for $18.4 million, the South Korean company said in a statement.
The deal is seen as strategic move by the Korean company to make inroads into the world's second-most populous country.
Meanwhile, Network18 will infuse $5 million in HomeShop18 to hold on to controlling stake of 51 per cent stake in the company.
After the deal, Network18 holds roughly 51 per cent stake in HomeShop18, 15 per cent will be with GS Home Shopping, and about 27 per cent with SAIF Partners.
HomeShop18 plans to leverage on GS Home Shopping's good relationship with suppliers in China and in other parts of the world, Haresh Chawla, group chief executive officer of Network18 said in an interview with CNBC-TV18.
