DaouKiwoom-CJ consortium to sign deal to acquire JoongAng Ilbo this week
A consortium comprising CJ, Shinsegae and two other companies will sign a deal Thursday to acquire debt-laden South Korean newspaper publisher JoongAng Ilbo, the company said Wednesday. Under the deal, the DaouKiwoom-CJ consortium will purchase 520 billion won ($388 million) worth of new shares in JoongAng Ilbo, with Daou Technology, CJ, Shinsegae and Saramin contributing 36.5 percent, 35.7…
The DaouKiwoom-CJ consortium, which includes CJ, Shinsegae, and two other companies, is set to sign a deal this week to acquire debt-laden South Korean newspaper publisher JoongAng Ilbo. The consortium will purchase 520 billion won worth of new shares in JoongAng Ilbo, with each member company contributing a specific percentage: Daou Technology, CJ, Shinsegae, and Saramin will contribute 36.5 percent, 35.7 percent, 14.1 percent, and 13.7 percent, respectively.
This deal will make the consortium the largest shareholder of JoongAng Ilbo. The newspaper had entered a debt workout program in July, led by its main creditor, Hana Bank, due to liquidity problems at its parent, JoongAng Group. JoongAng Ilbo plans to use the funds from the share sale to improve its financial health and address risks associated with its debt.
The consortium has pledged to retain all current employees and provide a stable working environment without layoffs, while also guaranteeing press freedom and editorial independence.
Brief written by urgent.news from The Korea Times's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
