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[Apha Biz=(Chicago) Reporter Paul Lee] CJ CheilJedang, which has launched a "selection and concentration" strategy, will sell off its entire stake in its Brazilian subsidiary CJ Selecta.
CJ CheilJedang announced on November 11 that it will sell its 66% stake in CJ Selecta, a Brazilian subsidiary, to a Brazilian subsidiary of the US grain company Bunge.
10% owned by CJ CheilJedang and 56% owned by CJ CheilJedang's Special Purpose Company (SPC) CJ LATAM will be transferred to about 480 billion won.
CJ Selecta is the world's No. 1 soybean processing company in the field of concentrated soybean protein (SPC), which is used as feed raw material, and earned about 1.132 trillion won in sales last year. CJ CheilJedang also bought Selecta when it aggressively expanded its investment, including the acquisition of U.S. frozen food company Schwan's in 2017. In 2019, the company also purchased additional shares and secured a 66% stake.
CJ Selecta is considered to be the best subsidiary that led the bio sector's positive performance last year, but it appears to have disposed of it according to its strategy to reorganize its bio business portfolio. CJ CheilJedang is expanding its bio business, which has been centered on green bio such as food additives and feed additives, to white bio fields such as new drug development and renewable materials.
CJ CheilJedang will secure about 800 billion won in funds when it completes the sale of its stake in Selecta in addition to 300 billion won in the sale of ground stocks.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
