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Photo: GLOBAL SAE-A |
[Alpha Biz= Kim Jisun] Global Sea Group is advancing plans to divest its entire paper division, including subsidiaries Taelim Packaging and Jeonju Paper, as part of a broader effort to strengthen its financial position, Korea Economic Daily reported on December 30.
According to the report, the group has appointed a financial advisor and begun soliciting expressions of interest for the sale of its paper businesses. The divestment package includes Taelim Paper and Taelim Packaging, acquired in 2020, as well as Jeonju Paper and its related subsidiary Jeonju One Power, acquired through its subsidiary TJ Investment in 2023.
Global Sea’s paper division has grown significantly through a series of strategic acquisitions and is now viewed as one of the group’s strongest cash-generating units. However, sustained external expansion has increased the company’s total debt to nearly KRW 3 trillion, and slower growth among several subsidiaries has prompted leadership to accelerate financial rebalancing.
Industry sources say the paper unit’s estimated EBITDA for this year is between KRW 180 billion and 200 billion, and the company is targeting a sale price of approximately KRW 2 trillion, roughly ten times that earnings figure.
If completed, the divestment would allow Global Sea Group to significantly reduce its debt burden and improve financial flexibility. Both global and domestic private equity firms are reportedly evaluating the opportunity, and related paper manufacturers are also expected to weigh in as potential buyers.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
