Shinsegae International Inc., the fashion arm of South Korea’s retail giant Shinsegae Group, divested all its equity holding in its joint venture with Italian cosmetics company Intercos Co. for 17.22 billion won ($14.4 million) to give impetus to own cosmetics brands and secure financial ammunitions in M&As.

According to a disclosure on Tuesday, Shinsegae International sold 3,356,564 shares or 50 percent in Shinsegae Intercos Korea Inc. to Italy’s Intercos for 17.22 billion won on June 30. With the acquisition, Intercos’ holding in the 50:50 joint venture has expanded to 100 percent.

Shinsegae Intercos Korea, founded in 2015, is a joint venture between Shinsegae International and Intercos in original development manufacturing and original equipment manufacturing business. It has been manufacturing Shinsegae International’s cosmetics brands Yunjak and VIDI VICI and is planning to maintain the supply and partnership, regardless of the stake sale.

“Both companies made meaningful achievements on the partnership and reached an agreement to build a new type of alliance for own capabilities,” said an official at Shinsegae International. “We’ll focus more on M&As and other investment for new growth and original technology.”

Shinsegae International shares on Wednesday closed 0.65 percent lower at 154,000 won in Seoul.

By Shim Sang-dae and Lee Ha-yeon

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