Oasis, the South Korean operator of overnight fresh grocery delivery service Oasis Market, appears increasingly likely to acquire TMON, a financially troubled e-commerce platform, on favorable terms, with no rival bidders currently in sight. As the company prepares for an initial public offering, it is pursuing mergers and acquisitions to expand its scale and secure a valuation that meets the expectations of its major shareholders. However, industry observers have raised concerns that the deal could become more of a liability than an asset.
According to the investment banking industry on Mar. 25, Oasis is on track to complete the acquisition of TMON in April. Letters of intent for the transaction were due by Mar. 21, with final acquisition proposals required by Apr. 9. While no competing bids are anticipated, Oasis has demonstrated strong intent to close the deal, making it the likely buyer.
The sale is being handled through a stalking horse bid, a process in which a preferred bidder is named in advance of an open auction. Oasis secured preferred bidder status after signing a conditional investment agreement on Mar. 6 with EY Hanyoung, which is overseeing the sale of TMON.
The company is reportedly offering a price slightly above TMON’s liquidation value of 13.6 billion won. Although TMON Chief Executive Officer Ryu Kwang-jin testified in court on Mar. 18 that the expected purchase price is approximately 30 billion won ($20 million), the final amount is expected to fall short of that estimate.
Unlike many of its peers in the e-commerce sector, Oasis has maintained a strong cash position and is not expected to rely on debt financing to complete the deal. As of the end of 2024, the company’s consolidated cash and cash equivalents stood at 149 billion won ($101 million), up 25.4 percent from the previous year. Its cash reserves have steadily grown from 98.8 billion won in 2021.
The acquisition is part of Oasis’s strategy to boost its corporate valuation ahead of its IPO, driven in large part by pressure from key investors. Private equity firm UCK Partners, one of Oasis’s primary backers, valued the company at 800 billion won ($545 million) during a pre-IPO investment round, but made the investment conditional on Oasis reaching a valuation of at least 900 billion won ($614 million) before proceeding with the IPO.
Achieving that benchmark has proven challenging. In 2023, Oasis sought to go public with a valuation target of up to 1.25 trillion won ($853 million), but institutional demand supported a valuation of only 630 billion won. As a result, UCK Partners exercised its veto power, forcing Oasis to halt its listing plans.
To revive its IPO prospects, the company is pursuing aggressive M&A activity to broaden its business and raise its valuation. Previous attempts to establish new growth engines—such as acquiring the quick commerce platform V from Mesh Korea and launching Oasis Alpha, a live commerce joint venture with KT Alpha—did not yield significant results. In January, Oasis conditionally acquired WiseUX Global, operator of the chicken breast brand I’m Dak, for around 5 billion won ($3.4 million).
“Oasis appears to be acquiring well-known companies to address its lack of brand awareness,” one industry official said. “TMON, once valued at nearly 2 trillion won ($1.3 billion), has seen its price plummet, so acquiring it at a bargain may help fill certain gaps. But whether it will actually enhance the company’s valuation remains unclear.” The official added, “With TMON having been out of operation for a prolonged period, it is uncertain whether its sellers will return to the platform.”
Oasis’s interest in TMON stems primarily from its user base. TMON is estimated to have between 4 million and 5 million active users—more than double the number Oasis currently serves. That would allow Oasis, at a relatively low cost, to rank among South Korea’s top five e-commerce firms in terms of membership. However, TMON has never posted a profit and reported an operating loss of 248.8 billion won ($169 million) in 2023, prompting concerns that the acquisition could erode the financial stability that has distinguished Oasis in the e-commerce space for its rare profitability.
