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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] The National Pension Service (NPS) recently reported its investment status regarding the corporate restructuring (legal management) process of Homeplus. The NPS stated on the 7th that it had invested a total of 6.12 trillion KRW in Homeplus and has recovered 3.13 trillion KRW so far.
According to the NPS, the National Pension Fund invested in Homeplus during the 2015 acquisition by private equity firm MBK Partners. The total investment of 6.12 trillion KRW consisted of 5.83 trillion KRW in redeemable convertible preferred stock (RCPS) through a project fund, and 295 billion KRW in common shares through a blind pool fund.
The RCPS were issued not by Homeplus directly, but by a special purpose company (SPC) called Korea Retail Investment, which holds shares in Homeplus. The RCPS issued by Homeplus, which impacts its debt ratio, were held by Korea Retail Investment. Last month, Homeplus and Korea Retail Investment agreed to change the redemption conditions of these RCPS.
The NPS clarified that, out of the investment, it has so far recovered 3.13 trillion KRW through refinancing and dividend receipts.
The NPS emphasized, "We have not agreed to change the terms of the RCPS, and the conditions of the RCPS in which the National Pension invested remain unchanged compared to the original terms." The NPS also assured that it would closely monitor the restructuring process and investment recovery efforts to ensure maximum returns.
On March 4, Homeplus filed for corporate rehabilitation proceedings at the Seoul Bankruptcy Court. Homeplus explained that its credit rating had recently declined, and there were concerns about potential liquidity issues. To alleviate the short-term debt repayment burden, the company initiated the rehabilitation process as a precautionary measure.
Credit rating agencies downgraded Homeplus’s commercial paper and short-term bond credit ratings from A3 to A3- at the end of last month.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
