Hanwha Group has signed a contract to acquire a controlling stake (58.62%) in OURHOME, and Woori Bank has decided to exclusively manage the acquisition financing. The total amount is 250 billion won.
According to investment banking (IB) industry sources on 17th, Woori Bank has agreed to provide 250 billion won in acquisition financing to the special purpose company (SPC) Our House F&B, established for the acquisition of OURHOME.
Earlier, on 11th, Hanwha Hotels & Resorts signed a stock purchase agreement (SPA) to acquire the 58.62% equity held by former Vice Chairman Gu Bon-seong (38.56%) and current OURHOME Chairman Gu Mi-hyun (19.28%). The acquisition price is set at 65,000 won per share, totaling 869.5 billion won. The total corporate value has been estimated at approximately 1.5 trillion won.
Hanwha Group plans to first acquire 50.6% equity and then fully purchase the remaining 8% held by former Vice Chairman Gu Bon-seong within two years. The total payment for the 50.6% acquisition is 750 billion won, with Hanwha Hotels & Resorts covering 250 billion won, financial investor (FI) IMM Credit & Solution (ICS) contributing 250 billion won, and acquisition financing covering the remaining 250 billion won.
ICS is reportedly likely to invest in convertible preferred shares. The average internal rate of return (IRR) agreed upon by ICS and Hanwha is 6%. This implies that it should meet a corporate valuation of about 2 trillion won in five years.
The market is paying attention to how the second daughter, former Vice Chairman Gu Ji-eun, will respond. So far, the industry has viewed it likely that, after the completion of the SPA between Hanwha and the first and second daughters, the former Vice Chairman's side would apply for an injunction against the sale of shares. However, Kim & Chang law firm, representing the former Vice Chairman, stated that they could not provide any comments regarding OURHOME.