Court Approves Homeplus's Pre-Approval M&A Application... Samil PwC Appointed as Lead Manager for Sale

Rehabilitation Court Recognizes Necessity
Seeking Potential Acquirer Through "Stalking Horse" Method

The court has approved Homeplus's application for a pre-approval merger and acquisition (M&A) process. Samil PwC has been selected as the lead manager for the sale.

The 4th Division of Rehabilitation at the Seoul Bankruptcy Court (Chief Judge Jung Junyoung) decided on June 20 to approve Homeplus's application to proceed with a pre-approval M&A and to select a lead manager for the sale.

On June 18, Homeplus applied to the court for permission to proceed with a pre-approval M&A and to select a lead manager for the sale, stating, "We will seek external capital inflow to ensure job security for employees, protect the business of partner companies, and repay creditors."

At that time, Homeplus argued, "The company's liquidation value (approximately KRW 3.6816 trillion) exceeds its going concern value (approximately KRW 2.5059 trillion)," and added, "Since the net assets and liquidation value are sufficient, we will repay the rehabilitation secured claims and rehabilitation claims early through a pre-approval M&A and sell the company under favorable conditions for stakeholders such as creditors and employees."

The court approved Homeplus's application after seeking opinions from the creditors' council and the court-appointed management committee and recognizing the necessity of the process.

The pre-approval M&A will be conducted using a "stalking horse" method. This involves signing a conditional acquisition agreement before the sale announcement and then seeking a potential acquirer through a public tender who may offer better terms.

Samil PwC, requested by Homeplus, has been selected as the lead manager for the sale. Samil PwC was previously appointed by the court as an investigator and had submitted an investigative report to the court regarding Homeplus's financial status.

The court stated, "It is expected that the process, including the signing of a conditional acquisition agreement and the selection of a final acquirer through a public competitive bidding, will take about two to three months."