[Alpha Biz=(Chicago) Reporter Kim Jisun] CJ will invest 60 billion won in CJ CGV's shareholder allocation capital increase, which will be worth 570 billion won. In the future, the company plans to hand over its entire stake in CJ Olive Networks, which is valued at 450 billion won.

According to the Financial Supervisory Service on the 20th, CJ CGV announced that it has decided to increase its shares in the general public offering of actual shares after allocating a total of 570 billion won worth of shareholders, including 380 billion won in debt repayment funds, 100 billion won in facility funds and 90 billion won in operating funds. Korea Investment & Securities, Samsung Securities, and Shinhan Investment & Securities.

New shares are 74.7 million shares, 1.5 times larger than the number of shares issued before the capital increase (47,728,537 shares). The expected value of issuing new shares is 7630 won. The scheduled subscription date for the old shareholders is September 6-7, and the payment date is the 14th of the same month. The disqualified stocks are preferentially allocated to the excess subscribers, and if the actual power occurs afterwards, a general public offering will be conducted.

CJ will invest 60 billion won in shareholder allocation. Only 10.5% of CJ's CGV shares (48.5%) participate. Considering CJ Olive Networks' investment in kind, which will take place in the future, it is reported that this is due to concerns that the stake in CJ CGV could rise too much. Of the remaining paid-in capital increase, 57 billion won (10%) will be allocated first to the members of the employee stock ownership association. Old shareholders are assigned about 1.4 new shares per share.

CJ also plans to invest its entire stake in CJ Olive Networks, a wholly subsidiary, in kind in CJ CGV. It will be done by participating in CJ CGV's third-party allocation paid-in capital increase in the future. The amount of investment in kind is confirmed by the court. The current valuation of accounting firms is about 450 billion won. When the third-party paid-in capital increase is completed, CJ Olive Networks will be changed from a subsidiary of CJ to a full subsidiary of CJ CGV.

 

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