MBK Partners noted on the 13th that Homeplus will cancel common shares for free if it proceeds with a pre-approval merger and acquisition (M&A). A pre-approval M&A is a structure where new shares are issued, allowing the new acquirer to become the majority shareholder, rather than selling old shares.
MBK Partners revealed through a report on this day that 'the investigative report submitted by the investigator appointed by the bankruptcy court was delivered on the 12th,' adding, 'As a result, while Homeplus has high real estate value, its recent operating performance has not been excellent, leading to a liquidation value of 3.7 trillion won, which is higher than the ongoing business value of 2.5 trillion won.' This explains the background for the decision on the pre-approval M&A.
'(In the case of a pre-approval M&A) MBK Partners' common shares of Homeplus, valued at 2.5 trillion won, will be canceled for free,' it stated, adding, 'We intend to do our utmost to support the new buyer's acquisition of Homeplus by relinquishing all rights, including management rights, without any compensation.'
MBK Partners explained, 'If a pre-approval M&A occurs, Homeplus will use the funds introduced from the acquirer to repay rehabilitation claims and will be managed as a normal company with liabilities significantly reduced,' citing successful cases such as Korea Line Corporation, Pan Ocean, Daehan Shipping, Ssangyong Motor, Eastar Jet, and Pantech.
Meanwhile, Homeplus has been undergoing corporate rehabilitation procedures since the 4th of March. MBK Partners stated, 'Homeplus has faced difficulties due to poor performance in offline retail, worsened business conditions due to COVID-19, and market restructuring towards e-commerce, and as there was a risk of a liquidity crisis in short-term funds due to an unexpected additional drop in credit ratings, it applied for rehabilitation proceedings.'