Homeplus "Negotiating with Potential Acquirer... Closure of 15 Stores Postponed Until Year-End"

All-Out Efforts for Pre-Approval M&A Success
Funding Issues Eased by Restoring Trading Terms
Store Operations to Be Determined by Acquirer

Homeplus, which is currently undergoing corporate rehabilitation proceedings and pursuing a merger and acquisition (M&A), announced on October 15 that it is in negotiations with a potential acquirer.

In front of a Homeplus store in Ulsan city. Yonhap News.

In a press release issued on the same day, Homeplus stated, "At this point, a successful pre-approval M&A is the most realistic and viable way for Homeplus to recover." The company added, "So far, we have made efforts to select a conditional preferred bidder among multiple potential acquirers using the stalking horse method, but we have not yet secured a preferred bidder." The stalking horse method refers to a sale process where a preferred negotiating party is selected first. Homeplus explained, "We are currently in negotiations with a potential acquirer, but as the talks have been delayed, the sale method has shifted from the stalking horse method to an open bid in accordance with the court's procedural schedule."

The company further emphasized, "Although the bidding method has been changed to an open bid by the court's decision, negotiations with the potential acquirer that were underway under the stalking horse method are still ongoing," and added, "We are making every possible effort to achieve a successful pre-approval M&A."

Homeplus stated, "On the premise that the trading terms with major partners are restored to pre-rehabilitation levels, resolving funding issues and normalizing supply volumes, we have decided to postpone the closure of 15 stores until the end of the year and focus on the ongoing pre-approval M&A." The company added, "Whether the 15 stores will continue to operate will be determined by the acquirer once the M&A is completed."