[Special Stock] Jinus Plummets on News of Failed Acquisition Talks with SK Networks

[Asia Economy Reporter Lee Seon-ae] Zinus is experiencing a sharp decline following the news of the breakdown in acquisition negotiations with SK Networks.

As of 9:16 AM on the 19th, Zinus is trading at 83,200 KRW, down 13.15% compared to the previous trading day. The stock price plunged to 82,300 KRW in early trading.

On this day, Zinus announced, "We have been negotiating with SK Networks regarding funding plans and the partial sale of the largest shareholder's stake, but ultimately, the acquisition negotiations with the counterparty have broken down." The scheduled board meeting for the day was also decided not to proceed.

Previously, Zinus had shown a strong stock price for three consecutive trading days following the news of acquisition talks with SK Networks, which is responsible for the rental business. Zinus is engaged in mattress and furniture manufacturing.

Meanwhile, global private equity firms (PEFs) such as Blackstone, Bain Capital, and CVC Capital, who had taken note of the growth potential in the U.S. online mattress market, also expressed acquisition interest.

Zinus first entered the mattress market in 2006 and began selling mattresses in the U.S. market through Amazon starting in 2013. Although it holds a 30% share of the U.S. online mattress market, the expected online penetration rate in the U.S. market for 2022 is 15.8%, which is still lower than that of the Korean market (40%). Zinus's consolidated sales steadily increased from 621.8 billion KRW in 2018 to 817.1 billion KRW in 2019, and 989.5 billion KRW last year, while operating profits during the same period were 53.1 billion KRW, 103.9 billion KRW, and 86.7 billion KRW, respectively.

This content was produced with the assistance of AI translation services.