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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] Theborn Korea announced on Thursday that it has no intention of acquiring Norang Food, the operator of Norang Tongdak. While the company initially reviewed the sale proposal and engaged in discussions, negotiations have since been halted.
The biggest obstacle appears to be the price gap. Theborn Korea has an M&A budget of 1 trillion KRW, whereas the estimated sale price of Norang Food is around 2 trillion KRW, making a deal difficult to reach.
Norang Food, acquired by Q Capital and CoStone Asia for 70 billion KRW in 2020, has expanded significantly. The number of Norang Tongdak franchises grew from 562 in 2021 to 752 in 2023, with revenue surpassing 1 trillion KRW.
Despite Theborn Korea securing 935 billion KRW through its IPO in November 2023, CEO Baek Jong-won emphasized that M&A investments would focus on synergistic opportunities. While Norang Food was considered, Theborn ultimately decided against the acquisition due to valuation differences.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
