Kim Byeong-joo, chairman of MBK Partners, noted that "even under court management, MBK controls the operations of Homeplus" and added, "We will strive to recover the equity value to a meaningful level."
On the 2nd, according to the investment banking (IB) industry, Kim conveyed MBK Partners' position regarding the recent controversy surrounding the Homeplus corporate rehabilitation procedure in an annual letter sent to institutional investors (LPs).
Kim explained that "Homeplus, one of the oldest and largest investments, applied for corporate rehabilitation in March due to a lack of working capital liquidity caused by a downgrade in credit ratings" and added, "This was an unavoidable measure due to the liquidity crisis stemming from the downgrade in credit ratings."
Regarding this, he mentioned that there was critical media reporting, but he stated, "We announced measures to fulfill our social responsibilities, such as personal grants for the welfare of all stakeholders."
Kim said, "There are several shareholders who have invested in Homeplus, and some of them are aware that they may face relative disadvantages compared to equity investors during the rehabilitation process."
This seems to indicate that the disadvantages for investors who invested in common stock may be greater than those who invested in preferred stock of Homeplus. The National Pension Service is an investor in redeemable convertible preferred stock (RCPS). MBK Partners invested in common stock along with Canada Pension Plan Investment Board (CPPIB), Public Sector Pension Investment Board (PSP Investments), and Singapore's sovereign wealth fund Temasek.
There was also mention of the investment in Korea Zinc. Kim remarked, "The acquisition of Korea Zinc has attracted attention with the provocative headline of 'hostile takeover' of a global smelting company," and added, "The essence of this transaction aligns with the government's value-up plan being pursued for governance reform."
He pointed out that Korean corporations are being traded at a 'K-discount' due to the weak governance of several conglomerates, citing Korea Zinc as a representative example. Kim stated, "Improvements in governance through professional management and a shareholder-centered board will maximize the potential value of this global enterprise (Korea Zinc)."
Kim shared the achievements of MBK, which is celebrating its 20th anniversary this year. He stated that MBK's current assets under management (AUM) exceed $31 billion, and that the amount returned to institutional investors (LPs) has surpassed $20 billion. He emphasized that the distribution of $20 billion is the largest scale in Asia.
He also explained that last year, they executed a total of eight new investments amounting to $3.6 billion and recovered $1.2 billion. He mentioned that the sixth buyout fund secured $5 billion in contributions within a year of its launch, and he noted satisfaction that many LPs are opting for re-investment. He indicated that he aims to complete the fundraising for the sixth fund within this year.