Pavilion Capital, controlled by Singapore state investment firm Temasek Holdings has joined the KKR-led consortium to buy a controlling stake in South Korean e-commerce site Ticket Monster (TMON) for $360 million.
Discount voucher company Groupon Inc. Monday said it had reached a deal to sell 46% in Ticket Monster to KKR & Co-led consortium that includes the company’s founder Daniel Shin, Hong-Kong based Anchor Equity Partners, Canada Pension Plan Investment Board and Pavilion Capital.
The deal will see Groupon receive $285 million in cash, with the remainder paid to TMON. Groupon acquired TMON in January 2014 for $260 million
The deal that values Ticket Monster at $782 million is expected to close in the second quarter, and will see Groupon book a gain of $195 million to $205 million on the transaction. The Chicago-based ecommerce conglomerate said it will use the proceeds for general corporate purposes and share buybacks. Groupon also pointed out that its board had recently approved a $300 million share-buyback program.
Post the deal, Groupon will continue to have a 41 percent stake in TMON.
“As the Korean market developed, it became obvious that TMON would benefit from additional resources and local expertise in its drive to be the leading social commerce company in Korea,” said Groupon CEO Eric Lefkofsky. “We look forward to watching TMON’s success as a continued large shareholder in the company,” he added.