MBK Partners has edge out rival bidder Lotte Shopping as the preferred bidder for electronics retailer Hi-mart.

Major shareholders of Hi-mart have chosen MBK Partners who bid as high as 1.25 trillion Korean won (US$1.1 billion). MBK will hold a controlling 65.25 per cent stake that was put on sale for 853.4 billion Korean won (US$737.6 million) by Hi-mart’s largest stockholder Eugene Corporation and other two shareholders H&Q Asia Pacific and IMM Private Equity.

The stake was sold by the three shareholders after Hi-mart’s CEO Sun Jong-koo and others faced an embezzlement charge of US$228 million.

“The three major shareholders and MBK Partners plan to sign a share purchase agreement and decide on other details after discussions,” said a spokesman.

MBK Partners is a private equity firm in the Asia-Pacific region whose portfolio of investments include Universal Studios Japan, New China Life Insurance, Gala TV and HK Savings Bank.

The choice has disappointed other Himart shareholders who were in favor of Lotte Shopping as they expected higher synergy from Lotte Shopping’s purchase of Himart.

Citi Group Global Market Korea Securities has been assigned to manage the sale.

GB