CJ Logistics to Merge with Affiliate
CJ Logistics Corp. (CJL), South Korea’s largest parcel delivery service company under food and entertainment conglomerate CJ Group, will merge with the group’s construction arm, Yonhap said.
The merger ratio will be one CJL share for every 0.54 CJ Engineering & Construction (CJEC) share, the logistics company said in a regulatory filing.
CJL said in a regulatory filing on Tuesday that it will grant total 529,398 shares worth 80.3 billion won ($73.9 million) to CJ Corp. that owns a 99.9 percent stake in CJ E&C in exchange for a merger with the construction affiliate. Following the swap deal, CJ Logistics will operate CJ E&C.
Meanwhile, CJ CheilJedang, a processed food maker under the conglomerate CJ Group, acquired a share of CJL to become the majority stakeholder as part of a plan to use the logistics company’s resources for faster global expansion.
The food maker’s acquisition of an additional 20.1 percent in CJL brings its total stake to 40.2 percent, making CJ Logistics a wholly-owned subsidiary of CJ CheilJedang.
“We will take a quantum leap toward being a global life and culture company by maximizing synergy among the three companies,” CJ said in a statement.
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.
