April 25, 2024
Industrials
CJ Logistics to merge with builder affiliate
[THE INVESTOR] CJ Logistics, the logistics arm of food and entertainment conglomerate CJ Group, said on Dec. 19 it will merge with the group’s construction unit as part of efforts to hone its global competitiveness.
The merger ratio will be one CJ Logistics share for every 0.54 CJ Engineering & Construction share, the logistics company said in a regulatory filing.
CJ Logistics said that it will give 529,398 of its shares worth 80.3 billion won (US$73.90 million) to CJ Corp., the group’s holding firm with a 99.9-percent stake in CJ Engineering & Construction, in return for the merger.
After the merger, CJ Logistics added that it will take over the business of CJ Engineering & Construction.
CJ Logistics expected the merger to help the company to provide better service by combining its capability to design advanced logistics centers and operational know-how with the construction unit‘s strength of building distribution facilities.
The merger will also likely to create synergy by meeting in-house demand for the construction of logistics centers, said CJ Logistics, which is currently building a mammoth logistics hub for door-to-door delivery on a site some 50 kilometers southeast of Seoul, it added.
Meanwhile, CJ CheilJedang -- CJ's core food processing unit -- has decided to acquire a 20.1 percent stake in CJ Logistics for a bigger leverage in global operations. CJ CheilJedang believes it can take advantage of the logistics' companies network, particularly those of China-based Rokin Logistics that was previously acquired by CJ Logistics.
CJ CheilJedang hopes to use the network to get more food into China, quickly and more cost-effectively, CJ officials said.
By Alex Lee and newswires (alexlee@heraldcorp.com)
The merger ratio will be one CJ Logistics share for every 0.54 CJ Engineering & Construction share, the logistics company said in a regulatory filing.
CJ Logistics said that it will give 529,398 of its shares worth 80.3 billion won (US$73.90 million) to CJ Corp., the group’s holding firm with a 99.9-percent stake in CJ Engineering & Construction, in return for the merger.
After the merger, CJ Logistics added that it will take over the business of CJ Engineering & Construction.
CJ Logistics expected the merger to help the company to provide better service by combining its capability to design advanced logistics centers and operational know-how with the construction unit‘s strength of building distribution facilities.
The merger will also likely to create synergy by meeting in-house demand for the construction of logistics centers, said CJ Logistics, which is currently building a mammoth logistics hub for door-to-door delivery on a site some 50 kilometers southeast of Seoul, it added.
Meanwhile, CJ CheilJedang -- CJ's core food processing unit -- has decided to acquire a 20.1 percent stake in CJ Logistics for a bigger leverage in global operations. CJ CheilJedang believes it can take advantage of the logistics' companies network, particularly those of China-based Rokin Logistics that was previously acquired by CJ Logistics.
CJ CheilJedang hopes to use the network to get more food into China, quickly and more cost-effectively, CJ officials said.
By Alex Lee and newswires (alexlee@heraldcorp.com)
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