Talks between the E-Land Group and U.S. private equity giant KKR for the sale of local retail chain Kim’s Club are dragging on due to differences over price, local reports said Monday.

E-Land is trying to sell its 37-branch hypermarket franchise to KKR for about 700 billion won, but the buyout firm is refusing to pay more than half of that price, Yonhap News reported, citing unnamed sources. Kim’s Club’s revenue last year was 660 billion won.


“Negotiations are going smoothly,” E-Land said, in response to that report, adding that a deal is likely within the current month. The group refused to confirm the part about price differences.

E-Land, which announced the selection of KKR as the preferred bidder in late March, had said it was aiming for contract signing early this month.

The sale is part of E-Land’s efforts to secure liquidity to improve its balance sheet. It is also seeking to sell NewCore Department Store in Seoul’s posh residential district of Gangnam, either in a package deal with Kim’s Club or separately.

Credit appraiser Korea Investors’ Service said in a recent report that for E-Land to achieve meaningful improvement in its finances, the sales of the two would have to fetch at least 1.4 trillion won.

By Lee Sun-young (milaya@heraldcorp.com)