In the quest for acquiring the South Korean retail giant Homeplus, two contenders have stepped forward. The attempt to secure new ownership for Homeplus is aimed at stabilizing its operations.
AI company Harex InfoTech and an anonymous bidder have expressed their interest by submitting their respective letters of intent (LOIs) before the cut-off date of October 31, as informed by investment banking insiders.
Homeplus, a retail arm which MBK Partners took over from Tesco in 2015, went bankrupt following years of falling sales and liquidity crunches. It was reportedly grappling with basic expenditures, such as electricity bills. However, in March, the court gave Homeplus the green light to look for a buyer under its rehabilitation scheme.
In preparation of its bid, Harex InfoTech is said to be strategizing to amass approximately 2 billion US dollars in the United States. With the proposed deal, all regular shares owned by MBK Partners would be voided. In contrast, new shares would be allocated to the bidder who succeeds.
It is obligatory for the triumphant bidder to assume Homeplus’ debts. These include a debt of 940 million US dollars owed to Meritz Financial Group and preferred shares amounting to 405.8 million US dollars held by the National Pension Service (NPS).
The process of due diligence for qualified bidders will persist through to November 21, with ultimate bids scheduled to be submitted by November 26.
While the existing deadline for presenting Homeplus’ rehabilitation plan is November 10, those keeping a close watch on the industry anticipate the court to prolong it to sync with the bidding timeline.
What is the current development with Homeplus’ ownership?
Two firms have submitted their letters of intent to bid for the ownership of Homeplus.
Who are the current bidders for Homeplus?
AI firm Harex InfoTech and an undisclosed bidder have shown interest in acquiring the South Korean retail giant.
What financial obligations will the successful bidder of Homeplus have to assume?
The winning bidder is required to tackle Homeplus’ debts, which consist of a 940 million US dollar debt to Meritz Financial Group and preferred shares valued at 405.8 million US dollars held by the National Pension Service.
