Latest news with #Homeplus
Reuters
2 days ago
- Business
- Reuters
Struggling retailer Homeplus gets approval for sale plan from South Korean court
SEOUL, June 20 (Reuters) - A South Korean court approved on Friday grocery retailer Homeplus's plan to sell the struggling company, in a move that the court said was aimed at providing funds to repay creditors and to ensure job security for employees at the company. In March, MBK Partners, a private equity firm which owns the company, filed for a court-led restructuring of Homeplus, marking a setback to the firm's marquee, $6.1 billion deal made more than a decade ago. A spokesperson for MBK said on Friday it will support the successful sale of the company and plans to write off 2.5 trillion won ($1.83 billion) worth of common shares that it holds in the company as part of the sale. The Seoul Bankruptcy Court approved a plan to appoint accounting firm Samil PricewaterhouseCoopers to manage the sale, which will take two of three months, the court said in a statement. The court said the sale would help channel funds into the company and pay back debts to its creditors, while guaranteeing the job security of Homeplus employees and protecting partner firms by avoiding bankruptcy. ($1 = 0.7424 pounds) ($1 = 1,369.2100 won)
Reuters
13-06-2025
- Business
- Reuters
MBK plans to sell its troubled Korean supermarket chain Homeplus
SEOUL/HONG KONG, June 13 (Reuters) - MBK Partners is seeking to sell its embattled South Korean supermarket chain Homeplus by issuing new shares, to avert liquidation of the retailer, the Northeast Asia-focused private equity firm said on Friday. The firm will then cancel shares worth 2.5 trillion Korean won ($1.83 billion) it currently owns in the company as it hands over control of Homeplus to the new buyer, according to a statement. MBK's cancellation of its Homeplus shares would translate into a hefty loss on what was Asia's biggest leverage buyout a decade ago. In March, MBK filed for a court-led restructuring of South Korea's No. 2 grocery retailer to avoid bankruptcy of the firm, which is still reeling from the fall-out of the COVID-19 pandemic and growing competition from e-commerce rivals. A recent court-commissioned review showed the retailer's liquidation value was higher than its value as a going concern, MBK said in its statement. In a separate statement on Thursday, Homeplus said the company had a liquidation value of 3.7 trillion won, with 6.8 trillion won of total assets. The sale will target strategic buyers, said a person familiar with the situation. In 2024, MBK launched a sale process for Homeplus Express, the supermarket business of Homeplus, said the source and a second one with knowledge of the matter. But that process stopped when Homeplus entered court-led restructuring, the first source said. Both sources sought anonymity as the information was not public. The firm led a consortium in 2015 to buy Homeplus from Britain's Tesco (TSCO.L), opens new tab for 4 billion pounds ($6.1 billion) with co-investments from Canada Pension Plan Investment Board (CPPIB), Canada's Public Sector Pension Investment (PSP) and Singapore state investor Temasek. The consortium provided equity of 3.2 trillion won and funded the deal with 2.8 trillion of debt, MBK said. CPPIB, which co-invested $534 million for a 21.5% stake in Homeplus according to its disclosure back then, had earlier written off its investment and exited the company, said a third person with knowledge of the matter. PSP and Temasek each held a smaller stake than CPPIB respectively, according to a fourth person with knowledge of the matter. The two firms have not disclosed their holdings in Homeplus. CPPIB, PSP and Temasek, who are also limited partners in MBK's private equity funds, declined to comment on their Homeplus investments. MBK declined to comment on the co-investors. South Korean prosecutors are investigating whether MBK Partners approved Homeplus's debt issue in 2025 despite prior knowledge of a credit downgrade for the retailer. MBK has denied the accusation. In May, prosecutors banned foreign travel by the chairman of MBK Partners, Kim Byung-ju, in their investigation. ($1=1,369.6 won)
CNA
13-06-2025
- Business
- CNA
MBK plans to sell its troubled Korean supermarket chain Homeplus
SEOUL :MBK Partners, a Northeast Asia-focused private equity firm, said on Friday it is seeking to put up for sale its embattled South Korean supermarket chain Homeplus to avert the retailer's liquidation. In March, MBK Partners filed for a court-led restructuring of South Korea's No. 2 grocery retailer to avoid bankruptcy of the firm, which has been reeling from the pandemic and rising competition from e-commerce rivals. MBK Partners said a recent review commissioned by the court showed that its liquidation value is higher than the going concern value. MBK Partners said the retailer plans to issue new shares and sell them to a buyer, while MBK will cancel the 2.5 trillion Korean won ($1.83 billion) worth shares it currently owns. The private equity firm struck the deal to buy Homeplus in 2015 from Britain's Tesco for 4 billion pounds. South Korean prosecutors are investigating whether MBK Partners approved Homeplus's debt issue in 2025 despite prior knowledge of a credit downgrade for the retailer. MBK has denied the allegation. Prosecutors imposed in May a foreign travel ban for the chairman of MBK Partners, Kim Byung-ju, as part of the probe. ($1 = 1,369.6 won)
Bloomberg
13-06-2025
- Business
- Bloomberg
MBK Seeks Buyer for Struggling Korean Supermarket Chain Homeplus
South Korea's troubled retail chain Homeplus Co. opened itself up to a takeover as its private equity owners seek to avoid the firm's liquidation. MBK Partners is seeking to find a buyer for Homeplus after a recent review showed the company's liquidation value exceeds its going-concern value, according to an MBK Partners statement Friday. If a 'pre-approval M&A' plan succeeds and an owner is found before finalizing Homeplus's rehabilitation plan announced in March, MBK Partners will cancel 2.5 trillion won ($1.8 billion) worth of Homeplus common shares it holds without compensation, the statement said.
Bloomberg
23-05-2025
- Business
- Bloomberg
Private Equity Tycoon Becomes Mired in Probe Over Korea Buyout
Michael ByungJu Kim, one of Asia's most prominent private equity tycoons, built his MBK Partners Ltd. into a regional powerhouse with marquee deals and tens of billions in assets under management. Now, a controversial bet on Homeplus, once the nation's second-largest supermarket chain, has returned to haunt him.
