SEOUL, KOREA - A bidding war surrounding Tongyang Magic, a home and kitchen appliance maker under the umbrella of Tongyang Group, is getting fiercer. According to industry sources on March 18, a total of ten bidders, including Hyundai Department Store Group, Kyowon Group, Kiturami Group, Cuckoo Electronics, Hahn & Co., and the like, have tendered letters of intent for the preliminary bidding for the company.

 

Despite the financial trouble and ensuing court receivership of its parent company last year, Tongyang Magic posted an operating profit of 22.1 billion won. The company produces a range of home appliances including gas oven, dishwasher, water purifier, bidet, and air purifier.

 

Hyundai Department Store Group expects synergies with its Hyundai Home Shopping, especially in the area of purified water rental business that Tongyang Magic is known for. As for Kyowon Group, it is trying again after losing out to KTB Private Equity last year when it sought to be selected as the preferred bidder for Tongyang Magic.

 

Cuckoo Electronics, small-but-financial sound company specializing in rice cookers, tendered a letter of intent on the same day as a way to expand its product line. The company plans to publicly offer its shares in the second half of the year.

 

An industry official commented, "As major players in the industry such as Hyundai Department Store Group and Kyowon Group are plunging into the bidding competition, excitement is already in the air."