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A view of the CJ CheilJedang headquarters. (Photo: CJ) |
[Alpha Biz= Reporter Kim Jisun] CJ CheilJedang is reportedly planning to sell its bio division, valued at approximately KRW 6 trillion. According to the investment banking (IB) industry on November 18, CJ CheilJedang has appointed Morgan Stanley as its lead advisor and is engaging with potential buyers.
The bio division consists of three main segments: Red Bio, which focuses on pharmaceuticals and medicine; White Bio, which develops eco-friendly materials; and Green Bio, which produces feed additives and flavor-enhancing food products. Notably, the Green Bio segment accounts for over 90% of the division’s revenue and is the primary target of the sale. Analysts estimate the sale value to be around KRW 6 trillion. CJ CheilJedang, a global leader in feed-grade amino acids like lysine and tryptophan, ventured aggressively into the bio sector during the Asian financial crisis. The company plans to retain its White and Red Bio segments post-sale.
Last year, the bio division reported KRW 4.13 trillion in revenue and KRW 251.3 billion in operating profit, contributing 23% of CJ CheilJedang’s total revenue and 30% of its operating profit. Despite growing overseas sales buoyed by the Korean Wave (Hallyu), the company has adopted a tighter fiscal strategy due to sluggish domestic demand.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
