Seoul Bankruptcy Court approves Homeplus' M&A deal to prevent bankruptcy and safeguard workforce

From Yahoo Finance: 2025-06-23 06:48:00

The Seoul Bankruptcy Court in South Korea has approved Homeplus’ pursuit of a merger and acquisition (M&A) deal to facilitate creditor repayment and preserve jobs. The approval allows Homeplus to select an M&A adviser and proceed with terms favourable to all parties. Homeplus must submit its rehabilitation plan by 10 July. Samil PricewaterhouseCoopers will oversee the sale process, expected to take two to three months. MBK Partners, the private equity owner of Homeplus, will support the sale and write off $1.83bn worth of common shares.

The court’s statement emphasized the benefits of the sale, including funding for the company, debt repayment, and avoidance of bankruptcy to protect partners. MBK Partners, under scrutiny from regulatory authorities, faces a tax probe by the National Tax Service and an investigation of potential insider trading by the Korea Fair Trade Commission involving Lotte Card. The Financial Supervisory Service is examining MBK Partners’ role in issuing short-term bonds for Homeplus.

The decision to allow Homeplus to engage in an M&A deal follows a downgrade of its corporate bonds due to financial health concerns. The sale aims to prevent bankruptcy and safeguard the company’s workforce. Homeplus’ request for court-assisted rehabilitation prompted regulatory scrutiny of MBK Partners. The court’s approval of the M&A deal is a significant step towards stabilizing Homeplus’ financial position and securing its future.



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