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[Apha Biz=(Chicago) Reporter Paul Lee] CJ CGV, which had a setback in its plan to expand capital through paid-in capital increase due to the court's decision not to approve it, decided to seek court judgment again.
According to the investment banking (IB) industry on the 9th, CJ CGV filed an appeal on the 4th after the court rejected the approval of the appraisal report necessary for CJ, the largest shareholder, to acquire CJ CGV shares in kind. At that time, the court rejected the application, judging that the objectivity of the appraisal report was not sufficient in the non-contentious case for the issuance of new shares filed by CJ CGV (a case that is handled with a simple procedure, not a trial).
Earlier in August, CJ signed a contract to acquire a total of 14,128,808 shares of its subsidiary, CJ Olive Networks, to receive 43,147,043 shares of CJ CGV common shares through a third-party allocation method. However, the court judged that the stock value of CJ Olive Networks is likely to have been overvalued because of the large difference between CJ CGV's stock value (444.4 billion won) and CJ Olive Networks' net assets (143.3 billion won).
The amount of capital expansion originally planned by CJ CGV was close to KRW 1 trillion. After allocating shareholders at the end of last month, the company succeeded in securing 415.3 billion won through a general public offering of actual shareholders, but due to the court's braking, it took a considerable period of time to get the remaining half.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
