Kim Byung-joo, chairman of MBK Partners, has recently confirmed that he held a private meeting with some ruling party lawmakers and disclosed plans for a free cancellation of common stock amounting to 2.5 trillion won. Additionally, it has been reported that Chairman Kim and MBK Partners plan to bear a financial burden of a total of 300 billion won through grants and joint guarantees.
According to the political sector and investment bank (IB) industry on the 19th, Chairman Kim revealed these plans during a meeting with some lawmakers from the Democratic Party of Korea. The meeting reportedly took place before MBK Partners issued a statement regarding the M&A of Homeplus prior to approval of its rehabilitation plan on the 13th.
However, it is said that this meeting was not conducted at the level of the National Policy Committee, and that the Democratic Party of Korea's Euljiro Committee met with Chairman Kim on behalf of the party last week.
At this meeting, Chairman Kim reportedly mentioned that pre-approval M&A, as recommended by Samil Accounting Corporation, is the best method for the rehabilitation of Homeplus, and to successfully complete this, MBK Partners plans to cancel all common stocks worth 2.5 trillion won.
In addition, Chairman Kim is also reported to have explained that he is bearing a financial burden of 300 billion won for the successful rehabilitation of Homeplus. It was revealed that Chairman Kim plans to contribute grants worth 100 billion won and that MBK Partners will guarantee loans amounting to 200 billion won.
There have been claims that Chairman Kim expressed his refusal regarding the request for grants of more than 1 trillion won, but it has been reported that such claims are not true.