Approval Granted for Selection of Sales Advisor
The court has approved Homeplus's application for a pre-approval merger and acquisition (M&A) process, as the company undergoes rehabilitation proceedings due to a liquidity crisis.
On June 20, the Rehabilitation Division 4 of the Seoul Bankruptcy Court, presided over by Chief Judge Jung Junyoung, decided to allow Homeplus to proceed with a pre-approval M&A and to appoint a sales advisor.
On June 18, Homeplus applied to the court for approval to pursue a pre-approval M&A and to select a sales advisor, stating, "We will seek external capital inflow to guarantee employment for employees, protect business operations of partner companies, and repay creditors."
At that time, Homeplus pointed out that the company's liquidation value (approximately 3.6816 trillion won) exceeds its going-concern value (approximately 2.5059 trillion won). The company argued, "Since our net assets and liquidation value are sufficient, we will proceed with a pre-approval M&A to repay rehabilitation-secured claims and rehabilitation claims early, and sell the company under favorable terms for stakeholders such as creditors and employees."
After consulting with the creditors' council and the court-appointed management committee, the court approved Homeplus's application on the grounds that the necessity was recognized.
The pre-approval M&A will be conducted using a "stalking horse" method, in which a conditional acquisition agreement is signed before the sale announcement, and then an open bidding process is held to find a potential buyer offering better terms.
Sam-il Accounting Corporation, which Homeplus requested, has been selected as the sales advisor. Sam-il Accounting Corporation is the investigator appointed by the court and has previously submitted an investigative report on Homeplus's financial status to the court.
The court explained, "It is expected that it will take about two to three months to select the final acquirer, including the signing of a conditional acquisition agreement and the open competitive bidding process."
Homeplus stated, "The administrator plans to complete the pre-approval M&A quickly and repay the rehabilitation-secured claims and rehabilitation claims early."
The company further explained, "The sale will proceed through a new share subscription method, and to facilitate a smooth sale, the shareholder MBK Partners has decided to cancel all of its common shares, worth approximately 2.5 trillion won, free of charge."
Homeplus emphasized, "All acquisition funds will flow into Homeplus, which is expected to have a significant positive impact on our financial position. We are not considering a split sale during the process, and ensuring employment stability for our employees will be our top priority."
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