Oasis Market, a South Korean company specializing in early morning deliveries, is considering acquiring another S. Korean e-commerce platform 11st.
A representative from 11st also confirmed, “We are aware that Oasis is considering the acquisition and are cooperating with the financial investors (FI) as much as possible.”
According to the distribution industry, Nile Holdings Consortium, a financial investor (FI) in 11st, recently received an acquisition proposal from Oasis and is reviewing the sale process. Oasis proposed a share exchange, where some of its shares and new shares of its affiliated logistics company, Route, would be exchanged for 100% of 11st’s shares. This plan envisions acquiring the management rights of 11st without injecting additional capital.
Oasis achieved its highest quarterly performance since its founding, recording sales of 128.9 billion won ($93.3 million) and an operating profit of $4.4 million in the first quarter of this year. Compared to the same period last year, sales increased by 12% and operating profit surged by 567%.
In contrast, 11st has incurred operating losses exceeding $72.4 million for two consecutive years since 2022. Earlier this year, SK Square, the largest shareholder with an 80.26% stake, entered a forced sale procedure by renouncing the call option (purchase right) held by the second-largest shareholder, Nile Holdings Consortium (18.18%). SK Square decided to relinquish management control and proceed with the sale process to allow the investor to recover funds first.
If Oasis acquires 11st, it could expand its business beyond fresh food delivery to include open markets and direct purchase platforms. Oasis plans to secure customers from SK Group affiliates that 11st holds, while also leveraging its partnership with global e-commerce company Amazon to grow new businesses such as overseas direct delivery of K-food.
However, for the sale to be successful, it requires the consent of all major investors. If the sale of 11st is completed, investors such as the National Pension Service ($253.4 million investment), private equity fund (PEF) manager H&Q Korea ($72.4 million), and Korean Federation of Community Credit Cooperatives ($36.2 million) are expected to recover their investments when Oasis goes public.
