At least two bidders have joined the race to acquire South Korean hypermarket chain Homeplus, the company said Friday.
The announcement came as the retailer confirmed it had received letters of intent from prospective buyers on the final day of its preliminary bidding deadline.
While the company declined to disclose the names of the bidders, industry sources indicate that at least two parties submitted letters of intent, one of which is reportedly Harex InfoTech, a Korean firm specializing in AI-powered retail platforms.
Local reports suggest that Harex InfoTech plans to integrate an “AI agent-based direct commerce model” into Homeplus’s operations to drive a tech-led transformation. The company has disclosed plans to raise $2 billion from the United States through global advisory firm Anari Capital to fund the acquisition.
According to Homeplus, accounting firm Samil PwC, which is managing the sale process, will review the submitted letters and documents to evaluate each bidder’s financing structure and business plan.
While the court-set deadline for submitting Homeplus’s rehabilitation plan is currently Nov. 10, the date is expected to be extended, as bidders will undergo due diligence from Nov. 3-21, followed by final bid submissions on Nov. 26, the retailer explained.
Homeplus added that it plans to remain open to new suitors expressing interest even after preliminary bidding, up until the final bid deadline.
“Since it is possible for a buyer to enter the process at the final bidding stage, the final outcome of this (merger and acquisition) may remain uncertain until the last round,” said one industry official.
After entering court-supervised rehabilitation in March, the company initially pursued a prearranged deal with a potential buyer while also preparing for a competitive bidding process. However, due to a lack of firm commitments, Homeplus shifted to an open auction in early October.
As part of the transaction structure, the company plans to cancel all common shares held by majority stakeholder MBK Partners and issue new shares to the eventual buyer, in order to channel the sale proceeds directly into the company, strengthen its balance sheet and reduce financing costs.
minmin@heraldcorp.com
