© Reuters. The price of the Naver stock drops to 170,000 won with the acquisition of Poshmark … The reason is?
When the share price plummeted on news that NAVER (Naver (KS :)) is pursuing the acquisition of an online fashion platform in North America, its market cap evaporated to 2.8 trillion won in one day. . As earnings concerns were added to the assessment that Poshmark’s corporate value was overvalued, this had a negative effect on the share price.
According to the Korea Exchange on the 5th, Naver closed at 176,500 won, down 17,000 won (8.79%) from the previous trading day in the previous day’s stock market. It dropped to 175,500 winners on the day, replacing the 52-week low.
It is the first time in two years and five months since the Naver share price fell below 180,000 won on April 21, 2020 (178,500 won). Foreigners and institutions net sold 315.3 billion won and 5.1 billion won respectively, while individuals bought 315.3 billion won net. The size of the market cap was 2,895.5 trillion in winnings, down from 3.17 trillion in the previous day, 2,788.8 trillion in one day.
Naver’s downtrend is believed to have been negatively impacted by news of the acquisition of North America’s largest fashion C2C platform, Poshmark, at a price above the current share price.
Naver announced the previous day that it would acquire 91,272,609 shares of Poshmark for approximately 2.34 trillion won before the market started. The expected date for the acquisition of the shares is April 4 next year. When the acquisition is completed, Poshmark will be incorporated as an affiliate of Naver, which operates an independent business.
It is expected to proceed as a merger between a special purpose subsidiary set up by Naver and Poshmark. It is known that it has already received confirmation of the right to vote, which exceeds the quorum of the merger resolution, which is close to 80%.
Naver said: “We are planning to securitize some of Naver’s cash, available loans and some investment assets by taking over 100% cash.
Naver valued Poshmark’s enterprise value at $ 17.9 per share and a net enterprise value of $ 1.2 billion (approximately 1.7 trillion won). As of the close of the 3rd (local time), Poshmark closed at $ 15.57 on the Nasdaq.
Another concern is that Poshmark’s loss of operating profit in the first half of the year is widening. Poshmark’s operating profit in the second quarter of this year was negative (-) $ 22.91 million, which widened the loss compared to the first quarter ($ -14.44 million).
Naver said: “The slowdown in the growth of the e-commerce market is playing an important role, but the GMV (transaction amount) is not stagnant, it was a growth of 20-30% in previous years, but this year. it’s slowed down to about 10%. ” Therefore, additional monetization will be possible “.
Meanwhile, on the same day, IBK Investment & Securities lowered Naver’s target price to 315,000 won and maintained its “buy” investment rating. Lee Seung-hoon, researcher at IBK Investment & Securities, said: “The target price was calculated reflecting the valuation of the global PEER group and the decline in the value of its stake in Z Holdings. Fact,” he analyzed.
