CJ announced on the 21st that it will set up an overseas holding company ‘CJ Global Holdings’ in Hong Kong in the first quarter of the year, and that it plans to list the company in the local stock market in around 2008.
CJ Global Holdings will be in charge of integrated management of CJ’s overseas feed business in Indonesia, China, Vietnam, Philippine, Turkey, and etc. CJ explained that it will be able to finance about KRW 200 billion through listing in Hong Kong stock market.
Lee, Jae-Ho, the managing director of finance team of CJ said “We can save a lot of financial cost for overseas subsidiary as it can be self-financed, once the holding company is set up” and expected that the actual value method profit from overseas feed section will increase from last year’s KWR 3.4 billion to KRW 10 billion this year since all of the scattered profits of small subsidiaries are counted as the actual value method profit.
Therefore CJ is planning to develop the Global Holdings as world’s No. 5 feed company by expanding the sales of overseas feed section from current KRW 350 billion to KRW 1.5 trillion in 2013.