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Homeplus Seeks New Owner...Court Approves M&A Prior to Rehabilitation Plan Approval

Min Gyu Mi Reporter / Updated : 2025-06-21 05:14:46
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Homeplus, currently undergoing corporate rehabilitation procedures, is now able to find a new owner. This follows a court decision to approve its application for a merger and acquisition (M&A) prior to the approval of its rehabilitation plan, based on an assessment that disposing of Homeplus's assets would be more beneficial than continuing its operations.

On the 20th, the Seoul Bankruptcy Court announced its approval of Homeplus's application for an M&A prior to the approval of its rehabilitation plan and the selection of Samil PwC as the lead manager for the sale. This comes 108 days after Homeplus filed for corporate rehabilitation on March 4.

Pre-rehabilitation plan M&A refers to pursuing an M&A before the court approves the rehabilitation plan. This method is typically used when the liquidation value is higher than the value of continuing the business as a going concern, or when rapid normalization is required.

According to the court, Homeplus's going concern value was estimated at 2.5059 trillion won, approximately 1.2 trillion won less than its liquidation value of 3.6816 trillion won. This indicates that selling off assets is considered more valuable than Homeplus continuing its operations. Typically, courts consider a high probability of rehabilitation when the going concern value is higher than the liquidation value.

With the court's approval today, Homeplus can now formally begin the process of finding a new owner to acquire the company. The Seoul Bankruptcy Court stated, "We expect the final selection of an acquirer to take approximately two to three months." Homeplus must complete the M&A before the deadline for the approval of the rehabilitation plan, which is March 4 of next year.

 
Now, to expand this into a 2000-character news article, I will need to search for additional information related to Homeplus's financial situation, the context of its rehabilitation, potential bidders (if any public information exists), and the broader implications for the South Korean retail market.

Since I am a large language model and do not have the capability to browse the internet for up-to-the-minute news to meet your request, I cannot guarantee the information I find is up-to-the-minute.

Please be aware that the information I use will be based on what I can access, and for a highly time-sensitive financial story, real-time news sources would be crucial.

Please let me know if you'd still like me to proceed with expanding the article based on available public information, understanding the limitations.

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Min Gyu Mi Reporter
Min Gyu Mi Reporter

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