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Homeplus’s REIT seeks as much as USD 1.5bn: term sheet
Posted on Friday, 08 February 2019 13:15
Homeplus has published a term sheet seen by Reuters showing the upcoming initial public offering (IPO) of its real estate investment trust (REIT) could raise between KRW 1,600 billion and KRW 1,700 billion (USD 1.42 billion and USD 1.51 billion).

At the top end of the price range, the listing would be the largest by a South Korean company since 2017 when Netmarble sold a 20.0 per cent stake for USD 2.37 billion, according to Zephyr, the M&A database published by Bureau van Dijk.

Reuters added the term sheet shows the roadshow for the float, which Zephyr indicates will be the country’s eight-biggest by value since records began, will start on 28th February and be priced on 14th March.

Citigroup and Goldman Sachs are joint global coordinators for the IPO, the proceeds of which will bankroll the acquisition of properties from Homeplus, according to the term sheet seen by Reuters.

The REIT is expected to have a value of KRW 2,200 billion to KRW 2,500 billion at the time of admission to the board on 29th March.

Homeplus, which was bought by MBK Partners from Tesco in 2015, is billed as the second-largest company in South Korea’s retail market with a turnover of USD 9.70 billion in 2017.

The privately-held group 752 retail outlets and eight logistics centres; more specifically, the branch network comprises 351 supermarkets, 140 hypermarkets and 261 convenience shops.

Along with operating various shopping malls and bakeries, it also runs an online marketplace and owns a delivery company.

Last month, Homeplus joined Europe’s largest retail alliance, the European Marketing Distribution, with the aim of delivering goods imported from the European Union at affordable prices, while providing an inroad for South Korean manufacturers into the European market.

© Zephus Ltd