CJ Group sells some of Olive Young’s shares… Will the owners spend money to strengthen their dominance?

CJ Group selected Glanwood PE as the target for the sale of Jibuk prior to listing on CJ Olive Young. (Source = CJ Olive Young)

Glanwood Equity (PE), a domestic private equity fund, becomes CJ Olive Young’s new shareholder. The industry believes that the funds raised by CJ Group will be used to improve the owner’s control.

According to the related industry on the 24th, CJ Group and Credit Swiss (CS), the sales supervisor, selected the target of the sale of shares as Glenwood PE before the listing of CJ Olive Young and signed a stock trading contract. The contract amount is about 400 billion won.

CJ Olive Young promoted a pre-IPO in September with shares held by individual shareholders. Pre-IPO is a form of pre-selling some of the shares held by a company before listing to external investors.

In this bid on the 16th, five private equity funds made by Glenwood PE and Hyundai Department Store competed fiercely.

The stake to be sold is about 24%, plus a 16% stake owned by the owner family, including CJ Powercast CEO Lee Sun-ho, the eldest son of CJ Group, and CJ Powercast CEO Lee Jae-hwan, the younger brother of Chairman Lee Jae-hyun, plus 8% new stocks. Glenwood PE holds a 24% stake in CJ Olive Young, becoming the second largest shareholder after CJ Holdings (51% stake after issuance of new shares).

Some observe that CJ Group will use the proceeds from the sale to strengthen its dominance. Chairman Lee Jae-hyun’s eldest son, Lee Seon-ho, owns a 2.75% stake in CJ Group.

CJ Olive Young maintains the No. 1 position in the health and beauty industry. It boasts a wide distribution network including over 1200 stores nationwide.

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