Alphabiz - CJ Shares Cool After Olive Young Merger Rumors, but IPO Remains Key Catalyst

CJ CheilJedang logistics center exterior. (Photo=CJ)

[Alpha Biz= Paul Lee] CJ Corporation’s shares have pulled back after briefly jumping on speculation of a merger with Olive Young. Despite the cooling momentum, expectations for Olive Young’s IPO continue to support CJ’s valuation.

CJ closed at KRW 185,600 on November 21, down 11% from its 52-week high. September’s sharp rise was driven by reports that CJ was reviewing a merger ratio with Olive Young—news the company later denied.

Olive Young, CJ’s core subsidiary (57.66% voting stake), remains the main growth engine. The company posted Q3 revenue of KRW 1.56 trillion (+26% YoY) and KRW 151.6 billion in net profit (+32% YoY), with cumulative 2024 sales surpassing KRW 4 trillion.

Although the IPO process is temporarily on hold, strong performance could restart the listing soon. Market expectations place Olive Young’s valuation in the KRW 5 trillion range.

CJ has also been increasing its ownership stake, including last year’s acquisition of an 11.3% block formerly held by Glenwood PE. Major shareholders include Chairman Lee Jay-hyun’s children, who hold minority stakes.

Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)