이 기사는 2021년 05월 21일 07:17 thebell 에 표출된 기사입니다.

Some of the financial investors in South Korea-based StyleShare have chosen a share swap over cash in a deal that gives bigger rival Musinsa controlling ownership of the online fashion platform.

Musinsa, an online fashion platform selling casual wear and fashion accessories, is in advanced talks to acquire StyleShare in a transaction that would value its equity at about 300 billion won ($265 million), industry sources said. The deal is expected to be signed as early as the end of this month.

Some private equity investors owning shares in StyleShare have agreed to swap their shares for Musinsa shares, betting on synergies between the two companies, according to sources.

Musinsa will likely issue new shares to pay those investors. Given Musinsa’s equity value of 2.8 trillion won, one share of Musinsa is expected to be swapped for every 9.3 shares of StyleShare.

This deal structure has allowed Musinsa to avoid potential financial burdens. The company had cash and cash equivalents of only 76 billion won at the end of 2020.

StyleShare, which targets younger female consumers, has raised about 55 billion won from investors to date. With its Series A funding in 2012, the company secured 800 million won from venture capital firms BSK Investment and SOQRI.

In 2014, StyleShare raised 2.5 billion won in a Series B funding round led by LB Investment, and two years later, it secured 6 billion won in a Series C funding round from IMM Investment, Atinum Investment, Stonebridge Ventures, KTB Network.

StyleShare completed its Series D financing, in which it raised 25 billion won from existing investors IMM Investment, Atinum Investment and Stonebridge Ventures as well as new investors Korea Investment Partners and Mirae Asset Venture Investment.

StyleShare and its subsidiary, 29CM, will operate independently after the acquisition by Musinsa to maintain their own characteristics. (Reporting by Si-eun Park)