It has been confirmed that multiple corporations submitted letters of intent (LOI) ahead of the sale of Homeplus Co.'s supermarket division (SSM), Homeplus Express.
According to the retail industry on the 31st, Samil PwC closed LOI submissions for the sale as of 3 p.m. that day. However, Homeplus Co. said, "Because the sale manager is in discussions, the names of the companies that submitted letters of intent this time and the detailed acquisition terms have not been disclosed." It added, "Depending on how things proceed, we understand there is a possibility of additional submissions by other corporations going forward."
In principle, if there is only one participant, the bid proceeds as a private contract. If there are two or more, it shifts to a competitive bid, and since Homeplus Co. and the sale manager said multiple candidates participated, follow-up steps such as selecting a preferred bidder and signing a contract are expected to follow. Samil PwC, the sale manager, plans to consult with the court the next day (Apr. 1) and proceed with the subsequent schedule.
Initially, Lotte Mart, E-MART, GS Retail, and BGF Retail were mentioned as likely participants in this sale. Homeplus Express ranks in the top three in the domestic SSM market, and there was an outlook that if either GS Retail (GS Fresh), the No. 1 player in the SSM market, or Lotte Shopping (Lotte Super), the No. 2 player, were to acquire it, their position in the market could be further strengthened.
If it were to be acquired by BGF Retail, which operates the CU convenience store chain, there were also projections that BGF Retail could expand its distribution industry footprint. However, these corporations say they did not officially participate. MBK Partners, the largest shareholder of Homeplus Co., was said to have hoped for an acquisition by Coupang citing its strength in quick commerce, but it reportedly did not materialize.
When it first pursued the sale of Express in 2024, Homeplus Co. expected a price in the range of about 700 billion to 1 trillion won. More recently, it is said to be expecting somewhere around the 300 billion won level. Corporations that showed interest in this sale are hoping for an even lower price. A retail industry official said, "While an amount that is too low is said to be a potential obstacle in the court's rehabilitation approval process, considering that Homeplus Express is based on franchise contracts and lacks real estate asset, even 300 billion won seems expensive."
The sale of Homeplus Express is a key variable that will determine whether Homeplus Co.'s rehabilitation proceedings can continue. Homeplus Co. must secure operating funds from the proceeds of the Express sale and demonstrate the feasibility of its rehabilitation plan. If the sale is delayed or falls through, the rehabilitation process for Homeplus Co. itself could be shaken. The court's deadline to approve the Homeplus Co. rehabilitation plan is May 4.