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Photo = Yonhap news |
[Alpha Biz= Paul Lee] CJ Olive Young is set to acquire an 11.3% stake in itself from Korea Beauty Pioneer, an early buyback driven by strong business performance. Originally, the stake was eligible for repurchase within three years, but the company has exercised its call option just one year into the agreement.
According to industry sources, CJ Olive Young has decided to repurchase the stake held by Korea Beauty Pioneer, a special purpose company (SPC) established by Shinhan Investment Corp. and Shinhan Bank. While the SPC was structured to hold the stake for up to three years, CJ Olive Young leveraged its improved financial performance and retained earnings to expedite the buyback.
With this transaction, CJ Olive Young's treasury stock holdings will increase from 11.29% to 22.58%, further solidifying its corporate structure. Additionally, the stake held by affiliated parties will approach 100%, strengthening the company’s ownership and control.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
