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…
A consortium led by CJ, Shinsegae, and two additional companies will formally sign an agreement this week to acquire debt-ridden South Korean newspaper publisher JoongAng Ilbo, the company announced on Wednesday. The DaouKiwoom-CJ consortium aims to purchase 520 billion won ($388 million) worth of new shares in JoongAng Ilbo, with each member contributing varying percentages: Daou Technology (36.5%), CJ (35.7%), Shinsegae (14.1%), and Saramin (13.7%).
Upon signing the agreement on Thursday, the consortium will become JoongAng Ilbo's largest shareholder. In July, JoongAng Ilbo embarked on a debt workout program overseen by its primary creditor, Hana Bank, and other lenders due to liquidity challenges within its parent company, JoongAng Group. JoongAng Ilbo intends to utilize all funds from the share sale to bolster its financial stability and tackle risks stemming from its debt.
The consortium has pledged to retain all current employees, maintaining a stable work environment without any layoffs. Furthermore, JoongAng Ilbo assures that the consortium will honor press freedom and editorial independence.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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