This article was published on the ChosunBiz MoneyMove site on March 14, 2025, at 1:53 p.m.
MBK Partners, the private equity fund operator and major shareholder of Homeplus, has confirmed that it will continue its previously planned sale of the supermarket division during the rehabilitation process. The supermarket division, Homeplus Express, operates 406 business sites nationwide and generated approximately 1 trillion won in revenue last year.
According to investment banking (IB) industry sources on the 14th, Homeplus is expected to include the sale plan for the supermarket division in the rehabilitation plan that the legal manager, Kim Kwang-il, vice chairman of MBK, will submit to the court within 60 days of the commencement of rehabilitation. (Related article☞ [Exclusive] MBK plans to include the sale of four additional Homeplus stores and the closure of 16 locations in the rehabilitation plan)
The potential transaction structure involves partitioning Homeplus Express from Homeplus and selling it to a domestic strategic investor (SI). The SI will then detach the acquired supermarket division and plan to create a new entity by merging it with Homeplus's supermarket division.
Despite the delay in the sale schedule due to the entry into the corporate rehabilitation process, MBK's intent to sell remains firm, according to reports. MBK entered into a non-disclosure agreement (NDA) with the SI at the end of last year. If there had been no variables regarding the rehabilitation process application, a memorandum of understanding (MOU) for the sale would have been signed this month, with a formal contract planned for April.
Candidates for SIs include GS Retail, Lotte Shopping, and Emart Everyday, which operate corporate-type supermarkets (SSM). However, it is uncertain whether domestic SIs are still willing to acquire, as the fallout from the Homeplus situation creates considerable uncertainty regarding potential acquisitions.
Kim Kwang-il, vice chairman of MBK, denied during a press conference for Homeplus that there are any plans to sell existing stores or close locations, stating that these decisions fall outside their own discretion and require court approval due to the entry into rehabilitation.
However, the rehabilitation plan will be led by the legal manager. Unlike typical cases where a separate administrator is appointed, Homeplus' rehabilitation will be overseen by the existing management team. This means that while the management operates under the court's supervision, they will conduct business operations and manage the company assets.
Most importantly, if Homeplus's management acknowledges the sale and closure of stores, there is a concern that existing personnel may leave, jeopardizing operations. Therefore, even if Homeplus has developed such plans, it is in a position where it can only claim to outsiders that this is not the case.
Homeplus entered the corporate rehabilitation process on the 4th due to worsening performance. MBK acquired Homeplus for a corporate value of 7.2 trillion won in 2015. MBK has maintained its stance that this is a "preemptive application for rehabilitation to increase the chance of recovery."