Share prices of E-World and Deconetishion surpassed the 15 percent daily growth ceiling on Tuesday and Wednesday on news that their parent company E-Land Group has succeeded in attracting prominent investment from Wanda Group, China’s largest cultural enterprise.
“Investments from the Chinese Group, led by China’s richest man Wang Jianlin, into E-Land have given a green light to the share prices of the two affiliates that had once been isolated in the capital market, ’’ Kiwoom Securities said in a report.
E-World and Deconetishion are the only two listed firms of E-Land Group, a mid-tier retailor in Korea that specializes in fashion and retail.
Shares of E-World, which runs a theme park in Daegu, jumped 14.56 percent to 1,015 won. Shares of Deconetishion, E-Land fashion business arm, soared 14.56 percent to 1,100 won.
Market watchers raised their outlook on shares of E-World as the Wanda Group chairman promised ”unlimited’’ investments in leisure-related development projects planned by E-Land.
Rumors of E-Land building a hotel and other amusement facilities in E-World to attract Chinese tourists to the Gyeongsang provinces are already sparking activity in the market.
Wanda Group’s trust in E-Land is essentially based on the retailer’s demonstrated success in the Chinese market.
E-Land Group is performing better in China than bigger rivals such as Shinsegae, Lotte and CJ. Its sales in the country reached 2.3 trillion won ($2.2 billion) in 2013.
The deal was also backed by the decade-long friendship between the Chinese superrich and vice chairwoman E-Land Park Sun-kyung.
“The top management of E-Land and Wanda have developed a win-win partnership over the past 10 years,” an E-Land official said.
“With the latest investment deal, the two companies will seek shared growth as close partners not only in leisure but also other retail sectors like travel.”
