According to the investment banking (IB) industry on the 24th, Samil Accounting Firm, the lead advisor for the Homeplus sale, recently distributed teaser letters (investment prospectuses) to potential buyers. It is understood that a number of strategic investors (SIs) and financial investors (FIs), including domestic and international retail companies, have begun reviewing the acquisition. One of these companies is reported to have expressed a strong willingness to acquire the business. This company was also mentioned as a potential buyer during the previous restructuring process.
This marks the third attempt to sell Homeplus. In the public auction held last November, two companies—fintech firm Harex Infotek and real estate developer Snowmad—which had participated in the preliminary bidding, submitted letters of intent (LOIs) but did not participate in the final bidding, ultimately causing the auction to fall through. At the time, given that questions had been raised about both companies’ actual ability to complete the acquisition—in terms of capital size and retail industry experience—it was assessed that the sale itself had only narrowly avoided the risk of receiving no bids.
This third attempt differs from the previous two in terms of conditions. The first attempt was conducted using the “stalking horse” method but was switched to a public competitive bidding process after no prospective buyer was found; the second attempt last November also ended without a viable prospective buyer, leading to a crisis where the reorganization proceedings were at risk of being terminated. From June to July of this year, the sale process effectively stalled amid a dispute between Meritz Financial Group and MBK Partners over the procurement of debt-in-possession (DIP) financing.
However, the tide turned when the reorganization proceedings were dramatically extended. Homeplus normalized operations at its stores nationwide last month and, on the 2nd of this month, secured approval for its reorganization plan, thereby escaping the threat of liquidation. Since this is the first time the company is proceeding with a sale after resolving three key risks—uncertainty over DIP funding, approval of the reorganization plan, and the normalization of operations—the market is viewing this as a more favorable sign than before.
The composition of the assets up for sale has also been streamlined. The hypermarket division, consisting of 67 core stores currently operating normally, will be transferred in its entirety through a business transfer, while 19 company-owned stores that have already closed will be separated as real estate and sold separately. The plan is to raise 1.4192 trillion won through the sale of real estate by February 2028 to repay the senior secured trust debt held by Meritz Financial Group, the largest creditor. Another key difference from previous attempts is that by selling the business and real estate separately, the company can now target both prospective buyers interested in the retail business itself and those focused on asset value.
However, some believe it is too early to be optimistic. Trust issues stemming from two previous failed attempts remain, and it is uncertain whether the candidates showing interest this time will actually submit Letters of Intent (LOIs) and complete the bidding process. The structural downturn in the large-scale supermarket sector itself, along with the burden of repaying public interest bonds amounting to 500 billion won, are also factors complicating potential buyers’ calculations. An official in the retail industry stated, “While the terms have clearly improved, to actually reach a contract, the gap in price expectations must first be narrowed.”
