Two Bidders Including AI Firm Join Homeplus Acquisition Race... New Owner Takes Shape

Harex InfoTech: "Acquisition Plan Involves Raising $2 Billion in the U.S."
Final Bid Submission to Be Decided After Due Diligence on November 26
Homeplus: "Will Continue Discussions with Additional Potential Buyers Until the Final Bid Date"

Two potential buyers have emerged for the public sale of Homeplus, which is currently undergoing corporate rehabilitation proceedings.

According to the investment banking (IB) industry on October 31, two investors submitted Letters of Intent (LOI) for the acquisition of Homeplus on this day. Samil PwC, the lead manager for the Homeplus sale, accepted LOIs and confidentiality agreements until 3:00 p.m. on the deadline.

In front of a Homeplus store in Seoul on the 31st. Photo by Yonhap News Agency

One of the known bidders is Harex InfoTech, an AI company. Founded in 2000, Harex InfoTech is not a widely recognized name. The company operates the fintech and AI platform 'UBpay,' and describes itself as a specialized AI sharing platform company that combines experience in payment business with cutting-edge AI technology to provide commerce-focused services and solutions.

The company stated in its LOI that it plans to acquire Homeplus by raising 2 billion dollars (2.8 trillion won) in the United States through an investment advisory firm. The LOI must specify in detail the amounts to be raised internally and externally.

The sale will proceed by canceling all common shares held by the major shareholder, MBK Partners, except for preferred shares among existing shares, and issuing new shares to be acquired by a third party.

Homeplus plans to conduct a preliminary due diligence from November 3 to 21, and receive final bids on the 26th of the same month. The company also stated that it is open to accepting additional LOIs.

The name of the additional party that submitted an LOI on this day was not disclosed. NongHyup Economic Holdings, which had been considered a strong candidate, did not participate this time. Previously, NongHyup, Coupang, GS Retail, and Aliexpress had been mentioned as potential bidders, but all denied involvement.

With the emergence of potential buyers, Homeplus has gained some breathing room. The company expects that the deadline for submitting the rehabilitation plan, scheduled for November 10, can be further extended.

The court has already extended the deadline for Homeplus to submit its rehabilitation plan four times, from June 3 to November 10.

Homeplus stated, "There is now confirmed hope that the sale will succeed," and added, "We will do our utmost until the end to ensure that this public auction is successfully completed through the normalization of operations."

Since the commencement of rehabilitation proceedings on March 4, Homeplus has been seeking a new buyer. Samil PwC, the lead manager, initially adopted a 'stalking horse' (pre-designated preferred bidder) approach. However, due to the large scale and financial burden unique to major retail companies, no business expressed interest in acquiring the company. As a result, MBK Partners shifted to a public sale.