MBK Faces Severe Sanctions Concerns... "Will Faithfully Explain Changes to Homeplus RCPS Terms"
Further Clarification Planned Through Legal Procedures
Domestic private equity firm MBK Partners issued a statement regarding the results of the Financial Supervisory Service’s (FSS) Sanctions Review Committee on the “Homeplus incident,” saying, “We will faithfully clarify our position on the related issues through future legal procedures.”
On the 3rd, MBK released this statement, adding, “We have consistently clarified that the issues raised so far—particularly the change in the terms of Homeplus’s redeemable convertible preferred shares (RCPS)—were reasonable management decisions made to protect investor interests by improving Homeplus’s financial structure and preserving its corporate value.”
MBK also expressed regret that the committee did not accept the point that the RCPS invested in by the National Pension Service and the Homeplus RCPS with amended terms are different securities.
The company emphasized that the results of the FSS Sanctions Review Committee are not the final stage of sanctions, reiterating its intention to continue clarifying its position. MBK stated, “The sanctions are not finalized based solely on the results of the Sanctions Review Committee. The review and resolution process by the Financial Services Commission remains,” adding, “We will faithfully clarify our position on the related issues through future legal procedures.”
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The previous day, the FSS reportedly held a Sanctions Review Committee meeting regarding the Homeplus incident and concluded that MBK should face severe disciplinary action, such as a suspension of duties. MBK is believed to have violated the Capital Markets Act by engaging in unfair business practices and breaching its internal control obligations. This is due to MBK, through a special purpose company (SPC) established for the acquisition of Homeplus, amending the RCPS terms in favor of Homeplus and waiving the redemption rights.
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