SK Planet and Salim Group rumored in talks on Elevenia acquisition

SK Planet is reportedly considering to sell shares in Elevenia. Technology company and owner of the popular 11Street e-commerce site in South Korea is rumored to be selling their stake in Elevenia which is a joint venture with XL Axiata since 2014. SK Planet hopes to sell 50 percent of the shares to get out of the tough market competition in Indonesia.

Tinuku SK Planet and Salim Group rumored in talks on Elevenia acquisition

Elevenia was founded by XL Axiata where SK Planet invested around 50 billion won. The report also said Indonesian retail giant Salim Group is interested in buying Elevenia and marking their deeper pace into the e-commerce business.

SK Planet has previously reportedly been in talks with Lotte Group in South Korea over acquisition. Lotte Group and Salim Goup have also built a joint venture of e-commerce in Indonesia called iLotte.com.

Currently, Elevenia is one of the popular e-commerce companies in Indonesia, but profits continue to decline due to stiff competition with two giants are Lazada which has been acquired by Alibaba and Tokopedia. Both have dominated the market.

"We are considering a different way to return the profit," said Planet SK spokesman.

SK Planet has a strong base in Indonesia and South Korea, but they also operate in Malaysia, Turkey, and Thailand. Sources also said that SK Planet will leave the market in Malaysia which is also under the influence of competition Lazada and Tokopedia.

According to internal reports Elevenia until the end of January 2017 has more than 5 million members with 50 thousand sellers and 8 million products in 8 categories. The average visitor is 60 million monthly and accounts for 50 thousand daily transactions.

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