MBK Partners (MBK): “1.7 trillion won was a bridge loan; final borrowing was 1 trillion won” — rebuts controversy over the Osstem acquisition [fn Market Watch]

[Financial News]  MBK Partners immediately refuted labor groups’ claims surrounding the acquisition financing for Osstem Implant and Homeplus asset sales. The firm said the temporary bridge loan secured during the tender offer for Osstem Implant should be distinguished from the acquisition financing ultimately drawn down. Regarding Homeplus, it denied disposing of assets to recoup its investment and detailed the financial support provided since rehabilitation proceedings began.
In a statement on the 27th, MBK responded to claims about borrowing, dividends and employment raised at a press conference held the previous day at the National Assembly Communication Center by the Korean Confederation of Trade Unions and others.
The central issue is the amount borrowed to acquire Osstem Implant. MBK explained that the 1.7 trillion won cited by labor groups was a bridge loan temporarily borrowed from financial institutions to fund the deposit for the tender offer. It said the actual borrowing after the tender offer was completed was 1 trillion won, representing 40% of the approximately 2.5 trillion won required for the tender offer and delisting.
MBK also stressed that it was not the sole party involved in the acquisition and management. MBK, UCK Partners and founding chairman Choi Gyu-ok jointly established a special purpose company (SPC), and the three parties continue to jointly manage the business, it said.
MBK cited the timing and amounts of dividend payments in response to the controversy. According to the firm, shareholders received no dividends in 2023 or 2024 after the acquisition, and dividends began in 2025. It said this year’s dividend was reduced by about 60% from last year to reflect business conditions.
On employment, MBK compared domestic headcounts before and after the acquisition. The total number of domestic employees rose by 444, from 2,291 at the end of 2022 to 2,735 at the end of the first half of this year. The number of non-fixed-term employees also increased by 445 over the same period, from 2,182 to 2,627, it said. However, the net increase in headcount before and after the acquisition and the number of departures over the past year cited by labor groups cover different periods and use different metrics.
Regarding Homeplus, MBK said it did not carry out any artificial workforce restructuring after investing in the company and before it filed for rehabilitation. It added that in 2019 it converted about 14,200 workers on indefinite-term contracts to regular employees. It said asset securitization and store closures were also measures to respond to changes in the retail environment, not to recoup the majority shareholder’s investment.
MBK cited total support of 400 billion won since rehabilitation proceedings began: a 40 billion won contribution from personal funds; a 60 billion won debtor-in-possession (DIP) loan from Curious; a 100 billion won direct loan; and a 200 billion won joint and several guarantee for a DIP loan from Meritz Financial Group. The total combines cash contributions, loans and guarantees.
MBK said, “The company and its executives are repaying a substantial portion of the amounts related to the joint and several guarantees and direct loans, and have also provided their homes as collateral for this purpose.”
MBK said operating cash inflows and support funds were used first to pay wages. A total of 763 billion won in wages was paid from the start of rehabilitation proceedings in March last year through July this year. It added that salaries are currently being paid two months late under an agreement between labor and management.
A source in the investment banking industry noted, “The burden of acquisition financing should be assessed alongside the final amount borrowed and the ability to repay interest,” adding, “Support for companies in rehabilitation should also be broken down into contributions, loans and guarantees, and it is important to examine how much it has led to actual cash inflows and a return to normal operations.” 


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