JoongAng Ilbo buyers have financial room to fund acquisition: KIS report
In an unconventional lifeline for Korea's traditional press, a diverse corporate coalition spanning tech, retail and entertainment has agreed to rescue JoongAng Ilbo, one of the nation’s most influential conservative daily newspapers. Under a 520 billion won ($388 million) conditional agreement approved Wednesday by the boards of Daou Technology, Saramin, CJ Corp. and Shinsegae, the newly…
The JoongAng Ilbo newspaper, a significant conservative daily in South Korea, is set to be rescued from financial turmoil through a conditional agreement worth 520 billion won ($388 million) involving a diverse group of corporate investors. This coalition, consisting of tech, retail, and entertainment companies, aims to provide the necessary capital to clear the newspaper's debts and exit a creditor-led workout program initiated this summer.
According to an assessment by Korea Investors Service (KIS), a Moody's affiliate, the acquiring companies have the financial capacity to comfortably fund the transaction. Daou Technology will contribute 36.5 percent of the total, about 189.8 billion won, while CJ Corp. will provide 35.7 percent, or 185.6 billion won. Shinsegae is participating as a financial investor with a 14.1 percent stake, amounting to 73.3 billion won, and online job portal Saramin will offer a 13.7 percent stake, valued at 71.2 billion won.
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.
