This article was displayed on the ChosunBiz MoneyMove (MM) site at 9:45 a.m. on Apr. 16, 2026.
As the sale of Homeplus Co. Express gets on track, MGC Global, the operator of MEGA MGC COFFEE (hereafter MegaCoffee), is being named as a strong acquisition candidate. The price expected by the market is around 300 billion won.
MGC Global is regarded as a solid company generating annual net profit in the 80 billion won range, but a look under the hood shows a high short-term borrowing fund ratio and tight cash flow, making it a variable whether actual financing is possible. The market analyzes that MGC Global is highly likely to form a consortium with an external financial investor (FI) to pursue the acquisition.
According to the investment banking (IB) industry on the 16th, MGC Global and a distribution company based in the South Gyeongsang region were said to have participated in the preliminary bidding for the sale of Homeplus Co. Express on the 31st. The sellers, hoping for participation by a major distribution corporation, are receiving final bids through the 21st, but for now, a two-way race between the two companies that entered the preliminary bid is likely.
In the industry, considering financial capacity and willingness to expand business, MGC Global is seen as more likely to acquire. Some suggest MGC Global may find 300 billion won burdensome and attempt to adjust the acquisition price, but an IB industry official said, "Because this is a court-led sale, I understand there is little room for price negotiation."
MGC Global's ability to mobilize cash appears sufficient to acquire Homeplus Co. Express. At the end of last year, MGC Global's cash and cash equivalents (separate basis) were 153.4 billion won, and short-term financial products were 31.9 billion won. In total, it has secured 185.4 billion won in liquidity. It is at a level where it can shoulder more than half of the 300 billion won Homeplus Co. Express acquisition price being discussed in the market with equity.
The issue, however, is the liability structure. As of the end of last year, short-term borrowing fund reached 105.7 billion won, and of the total financial liabilities of 151.5 billion won, 124.6 billion won, or 82%, matures in the first half of this year. As foreign-currency working-capital loans from commercial banks account for most of it, a substantial portion of cash reserves is tied up in repaying existing liabilities.
MGC Global also posted a solid 87.7 billion won in operating cash flow last year but paid out 77.2 billion won as dividends. Largest shareholder Woo Yoon received 69 billion won, and Premier Partners, which invested as an FI, received 8.2 billion won. In addition, an extra dividend of 41 billion won was decided under the 2025 settlement of account profit appropriation plan. It is also understood that 172.5 billion won flowed out for repayment of short-term borrowing fund.
In short, despite posting 84.2 billion won in net profit last year, MGC Global made large expenditures on major shareholder dividends and liability repayment. Because of this, some assess it is hard to say the company has sufficiently stockpiled dry powder for a large M&A.
The consolidated financial condition of Woo Yoon, the top-tier holding company, appears worse than MGC Global's. On a consolidation basis, total borrowing fund stands at 258.4 billion won, with current liabilities maturing within a year nearing 238.6 billion won.
Its financial asset is also far from cash that can be immediately deployed for M&A. Of its investment assets, 82.8 billion won is available-for-sale securities centered on Government Bonds, but loans to related parties also account for a considerable sum. It is therefore difficult to immediately convert financial asset into funds for acquiring Homeplus Co. Express.
The market also sees the possibility that MGC Global could use owned real estate to raise lacking acquisition funds. The land and buildings in key areas of Seoul (Cheongdam, Nonhyeon, Seogyo, Yeouido, etc.) owned by Woo Yoon have a book value alone exceeding 150 billion won.
There is also ample possibility of joining hands with an FI. Woo Yoon already partnered with Premier Partners during the 2021 acquisition of MegaCoffee. At the time, Woo Yoon invested a total of 80 billion won, including 20 billion won of BoraTR's KOSDAQ-listed borrowing fund, while Premier Partners invested 60 billion won, and the two acquired MegaCoffee for a total of 140 billion won. Premier Partners then exited step by step through methods such as dividends and the sale of redeemable preferred shares. The industry analyzes that a structure in which a strategic investor (SI) and an FI split roles is possible this time as well.
An IB industry official said, "However, I think Premier Partners' MegaCoffee investment was closer to a credit-type investment than a high-return equity deal," adding, "To attract an FI this time as well, how you design a return structure and recovery terms that an FI can accept will be important."