A British company listed on the London Stock Exchange recorded an increase record of its stock prices within hours of starting trading today, Tuesday, as its market value jumped by more than a third after announcing it had entered into a deal with a South Korean company that will lead it to enter the market there. .
Ocado’s shares are up more than 35% today, after entering the South Korean market through a partnership agreement with Lotte Shopping, Al Arabiya Net monitored.
The company has signed an exclusive agreement to develop the business of food online for the South Korean dealer.
Ocado will work with the Korean company to build a network of automated warehouses using intelligent platform technology and provide the technology to create food orders online.
Lotte Shopping is South Korea’s second largest grocery company, operating supermarkets, supermarkets and a large retail store onlinewith over 1,000 stores in all over the country. Its annual turnover is 15.6 trillion won (£ 9.5 billion).
Ocado, which has 12 international partners in 10 countries including the United States, Japan and France, has planned six customer fulfillment centers in South Korea by 2028. The first center is expected to become operational in 2025.
At the same time, the technology in-store fulfillment (ISF) will also be implemented in all Lotte stores starting in 2024.
Under the agreement, Lotte will pay Ocado a certain commission in advance and during the development phase, then the ongoing commissions associated with both sales and services.
“We believe we will sign more deals as our steerable market grows,” said CEO Tim Steiner in a conference call with journalists.
Investors welcomed this news and saw that the share price was below its fair value, as Ocado had benefited during the time of the Corona epidemic when people were stuck in their homes, but once it reopened the economy there has been a shift away from home connections.
Ocado stock on the London Stock Exchange went from 472p to 651p within hours of starting trading, but started the year at around £ 16. Despite this leap recordthe shares are still in drop of 60% since the beginning of the year.
“This is Ocado’s smart opportunistic move that will allow companies to gain a foothold in an important economy in growth, “said Victoria Scholar, Interactive Investor’s chief investment officer.
“The technological activity will be in able to generate commissions from Lotte during the development phase and also commissions associated with sales, which will likely increase your revenue. This connection will also help expand our partners’ delivery businesses using the proprietary robotic warehouse technology used in Ocado, “she added.
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