Homeplus, which is undergoing corporate rehabilitation procedures, has decided to pursue pre-approved mergers and acquisitions (M&A) to prevent bankruptcy. The current largest shareholder, MBK Partners, has agreed to forgo their entire investment of 2.5 trillion won to facilitate the sale of the company, raising questions about whether Homeplus can find a new owner.
According to the financial investment industry on the 15th, MBK and Homeplus requested approval for pre-approved M&A from the rehabilitation court on the 13th. They are expected to receive results as early as next week. The pre-approved M&A will proceed by Homeplus issuing new shares to attract new investment. The funds raised through the issuance of new shares are expected to be utilized for debt repayment to existing creditors or as investment for the company's future.
In this process, MBK has decided to burn all of its equity in Homeplus free of charge. Industry analysts believe that if MBK relinquishes its equity in Homeplus, the sale price may drop below 1 trillion won, depending on negotiations with the new acquirer.
Potential acquirers showing interest in Homeplus include Naver, GS Group, and Hanwha Group. Homeplus has a nationwide network of 126 large stores and 308 super supermarkets, making it potentially valuable for enhancing online and offline retail competitiveness. There are also speculations that Coupang, a strong player in e-commerce, or China's AliExpress may show interest.
As consumer trends shift towards e-commerce, there are predictions that M&A may face difficulties. According to government statistics from April this year, sales at large discount stores have decreased for three consecutive months compared to the previous year, and competitors like Emart and Lotte Mart are significantly reducing underperforming stores.
There are also forecasts that if a suitable acquirer does not emerge, the company may resort to partitioning sales of its business units instead of a total sale. MBK had pursued a plan to partition and sell the SSM division, 'Homeplus Express,' last June but canceled the plan due to the legal management situation in March this year.