eBay buying Gmarket shares from Interpark and Yahoo

According to The Associated Press Thursday report, eBay Inc. unveiled its plans to pay $1.2 billion for a majority stake in South Korea's top online marketplace Gmarket. It is supposed to become one of the company's largest acquisitions since the company has been purchasing companies throughout the decade. Company intends to do this in a move to build a platform for growth in Korea and also to expand further in Asia. 

South Korea is the world's sixth-largest e-commerce market after the U.S., Germany, the United Kingdom, China and Japan. South Korean market is considered to be one of the fastest moving and fastest growing markets.  

As the report says eBay will make a cash tender offer of $24 a share to purchase all outstanding common shares and American depository shares in the South Korean company. And eBay intends to obtain stake of at least 67% in Gmarket in case the tender offer is successful. eBay and Gmarket stated that the deal is anticipated to be closed during the second quarter of 2009, contingent on final regulatory approval in South Korea. 

In September eBay said it had received preliminary approval from South Korean regulators for its potential purchase of a stake in Gmarket. However, the deal was focused on eBay acquiring 37% of Gmarket shares held by Interpark Corp, South Korean online shopping and auction site, and its chairman.

The companies also announced that Interpark and its Chairman Lee Ki-hyung had signed tender agreements to sell their approximately 34% stake in Gmarket. Gmarket and IAC had a combined market share of about 36% in South Korea last year, according to the words of Park Joo-man, South Korean country manager for eBay. Yahoo Inc. announced that it has agreed to sell about 10% of its stake in Gmarket to eBay as part of eBay's announced tender offer.