Homeplus said on the 15th that it has not secured a preferred bidder for the sale. It added, however, that it has continued negotiations with a potential acquirer that had been proceeding under the stalking-horse method from before transfer.
A stalking horse is a method in which, after finding an interested party with the willingness and ability to acquire corporations, a conditional acquisition contract is signed with a strong interested party on the premise that the deal will be put up for open competitive bidding later. Homeplus initially proceeded with the sale using this method, but recently switched to an open bid.
In References distributed that day, Homeplus said, "We have worked to select a conditional preferred acquirer with multiple potential acquirers under the stalking-horse method so far, but we have not yet secured a preferred bidder."
It added, "We are currently negotiating with one potential acquirer, but as talks have been delayed, the sale method shifted from a stalking horse to an open bid during negotiations, following a schedule prearranged under court procedures."
However, Homeplus said, "Talks with the potential acquirer that had been proceeding under the stalking-horse method are still ongoing. We are making every effort necessary to complete the pre-approval M&A."
Homeplus also offered an explanation regarding issues related to the closure of 15 stores that were raised at the recent National Assembly National Policy Committee audit.
Homeplus had decided to close 15 stores where rent adjustments could not be reached, but on 19th it promised to put the plan on hold through a closed-door consultation with Democratic Party floor leader Kim Byung-kee and others.
Homeplus said, "We held talks with multiple potential acquirers for a pre-approval M&A, but due to uncertainties in the big-box mart sector and social issues surrounding Homeplus, only a limited number of potential acquirers remain in the current M&A market, making sale negotiations difficult."
It continued, "We were offered a plan to postpone the closure of the 15 stores until after the sale, but we replied that closures can be suspended only after funding and supply volume shortages are resolved," adding, "On the premise that funding issues are resolved and delivery volumes are normalized by restoring major counterparties' transaction terms to pre-rehabilitation levels, we decided to defer closures until the end of the year."
Homeplus added, "We agreed that whether the 15 stores will continue operating will be decided by the acquirer once the M&A is completed."
Meanwhile, at the National Assembly National Policy Committee audit held on 14th, Kim Byung-ju, chair of MBK Partners, the largest shareholder of Homeplus, and Vice Chair Kim Kwang-il appeared as witnesses.
At the session, Chair Kim said, "Only the completion of the M&A is a way for Homeplus to survive," and "Please help so that the M&A can be completed."
Vice Chair Kim, on the likelihood of the M&A being completed, said, "I think it's fifty-fifty," adding, "We are at a stage where the owner-level final decision-makers could decide, but we cannot get past the last hurdle."
He added, "By the end of October, I believe we must receive letters of intent (LOIs)," and "If we receive LOIs, it gives us grounds to ask the court for another extension."