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KDB Life Insurance Headquarters (Photo: KDB Life Insurance) |
[Alpha Biz= Paul Lee] CJ Olive Young, which is breaking records with its highest-ever performance, is moving forward with the acquisition of KDB Life Tower, a building it has been leasing for its headquarters.
The anticipated purchase price is expected to be around 600 billion KRW, and external borrowing for financing is seen as unavoidable, although the company has also kept the option of market-based funding open.
According to the Financial Supervisory Service's electronic disclosure system on Wednesday, CJ Olive Young reported total sales of 4.7899 trillion KRW and net profit of 470.2 billion KRW as of the end of last year, showing growth of 24% in revenue and 35% in net profit compared to the previous year.
The company continues to see strong growth, driven by the global K-beauty boom. Its revenue surpassed 1 trillion KRW for the first time in 2016, followed by 2 trillion KRW in 2021 and 3 trillion KRW in 2023. Over the past four years, its revenue growth rate has reached 26.5%.
In February, Olive Young was selected as the preferred bidder for the acquisition of KDB Life Tower, located near Seoul Station. Since 2021, the company has leased 40% of the building, and reports suggest it is placing a bid of around 680 billion KRW to acquire the property. The final purchase price will be determined through the due diligence process and negotiations.
Additionally, the company will also be spending funds to buy back its own shares. Olive Young has decided to purchase 11.3% of the shares held by its special purpose company (SPC), Korea Beauty Pioneer, in the form of treasury stock. Although Olive Young had a call option to buy back the shares within three years, it has opted to exercise this option within just one year. Once the transaction is completed, the company’s treasury stock will increase to 22.58%.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
