Subsidy listed & asset disposal… CJ to speed up to secure investment for global business expansion
Choi Yong Soon | cys@ | 2017-08-09 14:58:54
[Digital Times, Choi Yong-soon] CJ Group is focusing on the fact that it is actively preparing investment funds to expand domestic and overseas business such as merger and acquisition (M & A). Lee Jae-hyun, who returned to management in May, is planning to invest a total of KRW 36 trillion in M & A until 2020, with the vision of `World`s Best CJ` to become the world`s best in three or more projects.
According to industry sources on August 8, CJ Group affiliates are focusing on securing funds by listing subsidiaries, selling non-core assets, and issuing corporate bonds. First, CJ CGV is promoting the domestic listing of its subsidiary `CJ CGV Vietnam`. CJ CGV Vietnam ranks # 1 with a market share of over 50%. It is said that the company is currently being selected as the subject of the listing for the stock market next year. CGV Vietnam is expected to post sales of KRW 111.1 billion and operating profit of KRW 11.6 billion last year, with the market capitalization of more than KRW 400 billion.
CJ E & M has been promoting the studio dragon subsidiary in the year, and has begun raising funds by issuing private bonds. Studio Dragon is a subsidiary of E & M, which owns 90% of the company. With the goal of listing on the KOSDAQ in the second quarter, the industry estimates the enterprise value of the company at around KRW 600 billion. Besides, E & M recently reported that it raised nearly KRW 200 billion in corporate bonds (CP) and private bonds.
Earlier, CJ CheilJedang, one of the group`s flagship subsidiaries, and Korea Express, secured more than KRW 300 billion in assets through the sale of assets and issuance of corporate bonds. CheilJedang sold 2,985,850 shares of Samsung Life Insurance last month, securing KRW 357.7 billion. Korea Express, which took over overseas logistics companies one after another, also secured KRW 330 billion in issuance of corporate bonds last April, reducing funding concerns.
Meanwhile, CJ Healthcare is also likely to be listed. Although the listing plan has not been announced yet, the industry is planning to go public since next year as it has been listed since last year.
CJ Group affiliates are seeking funds through securitization and disposal of non-core assets, which is a measure to raise funds for expanding all-round projects, including acquisitions.
CJ Group is aggressively expanding its overseas business by acquiring India and Middle East logistics companies and Russian and Brazilian food companies. However, some in the industry have pointed out that CJ affiliates have raised funds to improve their financial structure, which has worsened due to business expansion.
A CJ Group representative said, "The listing of a good affiliate and the sale of non-core assets is aimed at securing funds for large-scale investments.”
By Choi Yong Soon cys@
[ copyright ⓒ The Digitaltimes ]
According to industry sources on August 8, CJ Group affiliates are focusing on securing funds by listing subsidiaries, selling non-core assets, and issuing corporate bonds. First, CJ CGV is promoting the domestic listing of its subsidiary `CJ CGV Vietnam`. CJ CGV Vietnam ranks # 1 with a market share of over 50%. It is said that the company is currently being selected as the subject of the listing for the stock market next year. CGV Vietnam is expected to post sales of KRW 111.1 billion and operating profit of KRW 11.6 billion last year, with the market capitalization of more than KRW 400 billion.
CJ E & M has been promoting the studio dragon subsidiary in the year, and has begun raising funds by issuing private bonds. Studio Dragon is a subsidiary of E & M, which owns 90% of the company. With the goal of listing on the KOSDAQ in the second quarter, the industry estimates the enterprise value of the company at around KRW 600 billion. Besides, E & M recently reported that it raised nearly KRW 200 billion in corporate bonds (CP) and private bonds.
Earlier, CJ CheilJedang, one of the group`s flagship subsidiaries, and Korea Express, secured more than KRW 300 billion in assets through the sale of assets and issuance of corporate bonds. CheilJedang sold 2,985,850 shares of Samsung Life Insurance last month, securing KRW 357.7 billion. Korea Express, which took over overseas logistics companies one after another, also secured KRW 330 billion in issuance of corporate bonds last April, reducing funding concerns.
Meanwhile, CJ Healthcare is also likely to be listed. Although the listing plan has not been announced yet, the industry is planning to go public since next year as it has been listed since last year.
CJ Group affiliates are seeking funds through securitization and disposal of non-core assets, which is a measure to raise funds for expanding all-round projects, including acquisitions.
CJ Group is aggressively expanding its overseas business by acquiring India and Middle East logistics companies and Russian and Brazilian food companies. However, some in the industry have pointed out that CJ affiliates have raised funds to improve their financial structure, which has worsened due to business expansion.
A CJ Group representative said, "The listing of a good affiliate and the sale of non-core assets is aimed at securing funds for large-scale investments.”
By Choi Yong Soon cys@