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[Alpha Biz=(Chicago) Reporter Kim Jisun] CJ CheilJedang sold its Chinese subsidiary for 300 billion won. CJ CheilJedang explained that it sold overseas subsidiaries that are not related to K-food brands such as Bibigo for "choice and concentration."
Some analysts say CJ CheilJedang, a "cash cow," has started to secure cash in a bid to promote financial stability for CJ Group, which is suffering from the entertainment business.
CJ CheilJedang announced on the 31st that it has sold its entire 60% stake in its Chinese food subsidiary, Ground Rat. The sale cost is about 300 billion won in total. The buyer is said to be a local company, the second-largest shareholder of multiple Chinese institutional investors and terrestrial shareholders.
Jisangju is a company that sells Chinese side dishes such as Jachai (aka Jjasai) and Chinese sauce. It is a net company with sales of 209.1 billion won and net profit of 26.1 billion won last year.
On two occasions in 2011 and 2016, CJ CheilJedang acquired a total of 60% stake in ground mice for 38.5 billion won. The sale price is eight times the amount invested at the time of the acquisition.
Just because CJ CheilJedang sells ground mice does not mean it will shrink its business in China. Major products such as Bibigo Frozen Foods and Dada are produced and sold through another subsidiary of China, Qingdao Foods. CJ CheilJedang's sales in China reached 457.4 billion won last year, accounting for 8.8% of its total overseas sales of 5.1811 trillion won.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
