CJ consortium buys Shindongbang


Below is the excerpted article from the Korea Herald..


CJ consortium buys Shindongbang

A majority stake in Shindongbang, a domestic foods manufacturer, will be sold to a consortium led by rival food company CJ Corp.

Woori Bank, the main creditor of Shindongbank, announced yesterday that it has signed an agreement with the CJ consortium to sell a 56-percent stake in Shindongbang, a company that has been under a debt workout program for the past five years, for 210 billion won ($177.9 million).

This will make CJ Corp. an unrivalled leader in the nation's food manufacturing industry, analysts said. KD Partners also participated in the purchase.

Following the agreement, the CJ consortium unveiled its plan to carry out a capital reduction of Shindongbang at a ratio of 5-to-1 for creditors and 10-to-1 for minority shareholders.