Homeplus M&A Gets Underway... Investment Memorandums to Be Sent to Potential Buyers This Week

[Financial News] Homeplus is launching the sale process for 67 hypermarket stores, including its headquarters and online business division, as well as 19 company-owned stores among its closed locations, in accordance with its rehabilitation plan.
According to industry sources on the 17th, Samil PricewaterhouseCoopers, the adviser overseeing the Homeplus sale, plans to send investment memorandums to potential buyers this week.
The sale will transfer the hypermarket business, including the headquarters and online business division, through a business transfer. The real estate of 19 Homeplus-owned properties among the closed stores will be sold individually.
In its rehabilitation plan, Homeplus presented the following as key measures: improving its financial structure by selling 19 company-owned stores among the closed locations; improving business viability by normalizing operations and reducing fixed costs; and pursuing mergers and acquisitions for its remaining business divisions.
Homeplus is currently investing in the normalization of operations at 67 key stores that reopened on the 7th of last month. Homeplus explained that it had reduced fixed costs, including rent and labor expenses, by approximately 500 billion won through the rehabilitation proceedings.
Once a sale agreement is signed, Homeplus must revise its rehabilitation plan to reflect the sale proceeds and resubmit it to the court. This could potentially bring forward the repayment schedule for creditors compared with the existing plan.
A Homeplus official said, "We believe that the future normalization of operations and improvement in business viability will affect the successful completion of the hypermarket business and real-estate sales, as well as the creditor repayment rate and timing."
[email protected] Kim Hyun-ji Reporter