Homeplus Embarks on M&A Strategy Amid Court Approval
Deal News | Jun 23, 2025 | EIN
The Seoul Bankruptcy Court in South Korea has approved a significant merger and acquisition (M&A) deal for Homeplus, a discount store chain. This move aims to repay creditors and preserve jobs, following the company's filing for corporate rehabilitation. The court's decision enables Homeplus to appoint an M&A adviser and ensure favorable terms for creditors and employees. This approval comes after concerns over Homeplus' financial health led to a downgrade of its corporate bonds. Samil PricewaterhouseCoopers will oversee the sale process, anticipated to take two to three months. Homeplus is supported by MBK Partners, its private equity owner, who plans to write off approximately $1.83 billion in common shares to facilitate the sale. The process is under scrutiny from several regulatory bodies, including the National Tax Service and the Korea Fair Trade Commission, investigating potential wrongdoings by MBK Partners.
Sectors
- Retail
- Private Equity
- Financial Services
- Legal
Geography
- South Korea – The entire article revolves around events and entities located in South Korea, such as Homeplus, MBK Partners, and various regulatory authorities.
Industry
- Retail – Homeplus is a major discount retail chain in South Korea, reflecting the article's focus on the retail industry.
- Private Equity – MBK Partners, a private equity firm, owns Homeplus and is directly involved in the M&A deal, highlighting the role of private equity in corporate transactions.
- Financial Services – The involvement of the Seoul Bankruptcy Court and Samil PricewaterhouseCoopers, along with regulatory bodies, places the article within the financial services sector.
- Legal – The article discusses court involvement and legal procedures related to corporate rehabilitation and M&A activities.
Financials
- Won2.5tn ($1.83bn) – The value of common shares MBK Partners plans to write off to facilitate the M&A deal.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Homeplus | Target company | Company | A major discount store chain in South Korea seeking an M&A deal amid financial concerns. |
| MBK Partners | Owner and Supporting entity | Company | The private equity firm that owns Homeplus and is facilitating the M&A process by writing off shares. |
| Samil PricewaterhouseCoopers | M&A Adviser | Company | Court-appointed accountancy company recommended to oversee the sale process of Homeplus. |
| Seoul Bankruptcy Court | Judicial Body | Government | The judicial body that approved Homeplus' pursuit of an M&A deal. |
| National Tax Service | Regulatory Authority | Government | Investigating potential tax-related issues with MBK Partners and Homeplus. |
| Korea Fair Trade Commission | Regulatory Authority | Government | Investigating insider trading allegations involving MBK Partners and Homeplus. |
| Financial Supervisory Service | Regulatory Authority | Government | Examining the issuance of bonds by Homeplus under the oversight of MBK Partners. |
| Lotte Card | Relevant Entity | Company | A local card issuer mentioned in the investigation of insider trading. |