Seoul: Hanwha Hotels and Resorts Co., a subsidiary of the South Korean conglomerate Hanwha Group, announced its decision to acquire Ourhome Co., a prominent local supplier of ready-to-eat meals, for 869.5 billion won (approximately US$598.6 million) in a strategic move to strengthen its food service division.
According to Yonhap News Agency, Hanwha Hotels disclosed in a regulatory filing that it has entered into a stock purchase agreement to acquire a 58.62 percent stake in Ourhome. This deal involves purchasing around 13.4 million shares from key stakeholders, including Koo Bon-seong and Koo Mi-hyun, members of the controlling Koo family, along with two other related shareholders.
The acquisition plan outlines an initial purchase of a 50.62 percent stake for 250 billion won, scheduled for April 29. The remaining 8 percent, currently held by former Ourhome vice chairman Koo Bon-seong, will be acquired through a third party following mutually agreed terms. Hanwha Hotels intends to secure additional funds for the acquisition through a financial investor. Discussions are reportedly underway with IMM Credit and Solutions, a private equity firm, to raise an estimated 250-300 billion won.
The acquisition process faces potential challenges due to a family dispute involving Koo Ji-eun, also a former vice chairman of Ourhome and sibling to Bon-seong and Mi-hyun. Koo Ji-eun is expected to seek a court injunction to prevent the takeover.
Ourhome, which was spun off from South Korea's LG Group in 2000, is a leading provider of ready-to-eat meals and ingredients, catering primarily to businesses and educational institutions. Additionally, it offers catering services and exports food distribution solutions, including cafeteria management.
Hanwha Hotels, known for its extensive network of resorts and hotels across South Korea, is managed by Kim Dong-seon, the son of Hanwha Group Chairman Kim Seung-youn.