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CJ Olive Young Gangnam town branch. (photo = Yonhap news). |
[Alpha Biz=(Chicago) Reporter Kim Jisun] CJ Group will join hands with financial investors (FI) to buy back CJ Olive Young's second-largest shareholder stake. Glenwood Private Equity, the second-largest private equity fund (PEF) operator, will invest 410 billion won to recover 780 billion won in about three years.
According to the investment banking (IB) industry on the 1st, CJ Group and FI signed a SPA on the 28th to acquire a 22.56% stake in CJ Olive Young from Glenwood PE for 780 billion won. 50% is bought by CJ Group in the form of treasury stock, and the other half is acquired by a special purpose company (SPC) led by FI.
CJ Olive Young's corporate value (EV) set aside during the signing process is estimated at around 3.46 trillion won. It has doubled in three years from the corporate value (KRW 1.8 trillion) set aside when Glenwood PE launched CJ Olive Young Free IPO in 2021.
Olive Young's largest shareholder is CJ with a 51.15% stake. CJ CheilJedang management leader Lee Sun-ho, the eldest son of CJ Chairman Lee Jae-hyun, holds 11.04% and his daughter Lee Kyung-hoo, head of CJ ENM's brand strategy office, holds 4.21%. The possibility of a merger between CJ Group and CJ Olive Young is also mentioned.
CJ and Glenwood have been weighing the timing of CJ Olive Young's listing, but have not found the right timing. In the end, Glenwood pushed for the sale of its old shares, and CJ, the largest shareholder, came forward. Glanwood PE's profit margin of 370 billion won and internal return (IRR) of more than 30% will be recorded.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
