This article was published on June 19, 2025, at 5:30 p.m. on the ChosunBiz MoneyMove site.
As Homeplus is pushing for mergers and acquisitions (M&A) before approving its rehabilitation plan, it is reported that Samil (Samil PwC), which served as the investigation committee, is likely to take charge of the sale management as well. The court is expected to make a decision on initiating M&A as early as next week.
According to investment banking (IB) industry sources on the 19th, the appointment of Samil as the manager for the sale of Homeplus's management rights is likely to be confirmed. Having meticulously reviewed Homeplus's liquidation value and going concern value until recently as an investigator, they are regarded as the most knowledgeable regarding the company's financial condition.
The sale of Homeplus will prioritize 'total sale.' Previously, the industry speculated that Homeplus might consider partitioning the sale of Homeplus Express, its supermarket, but it has decided to proceed with a total sale.
The sale price must exceed the liquidation value of 3.7 trillion won. On the 12th, Samil held an explanation session for its investigative report, revealing that Homeplus's liquidation value is estimated at 3.7 trillion won and its going concern value at 2.5 trillion won. Since MBK Partners has decided to forfeit its existing equity, the sale proceeds contributed by the acquirer can be fully utilized for the normalization of Homeplus.
Liquidation value refers to the amount remaining after a company sells all its assets, including stock and real estate, and repays its debt. Going concern value is the estimated present value of future cash flows the company is expected to generate under the assumption that it will continue operations.
The real estate value, which is key to estimating Homeplus's liquidation value, is determined by reflecting the average auction bid rate of the area in which the store is located (down to the district level). In Seoul, the bid rate is reported to average around 70%, while in provincial areas, it is around 50%.
The court is expected to receive creditor opinions by this week and may make a decision on initiating M&A as early as next week. During this time, the industry has been paying close attention to whether Meritz Financial Group, the senior creditor that lent 1.2 trillion won, will agree, and it has been assessed that Meritz surmounting the largest hurdle signifies progress.
However, the market views that it would have been difficult for Meritz to oppose the rehabilitation plan from the outset. If Homeplus fails in its rehabilitation and has to liquidate, it would need to sell stores and close locations, which poses the risk that Meritz might bear responsibility for a surge in unemployment.