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[Alpha Biz=(Chicago) Reporter Kim Jisun] Olive Young said on the 7th, "We accept the FTC's decision." The Fair Trade Commission said it will impose a fine of 1.896 billion won and a correction order on Olive Young and file a complaint with the prosecution against the corporation for violating the large distribution business law, including banning suppliers from participating in competitors' events.
"We have already completed or will complete the improvement of our internal system, and we will share all future processes transparently with our partners," CJ Olive Young said.
As CJ Olive Young shakes off hundreds of billions of won in fines, market attention appears to be shifting to the company's initial public offering (IPO), which was postponed indefinitely in July last year. CJ Olive Young's IPO has been recognized as a means of financing for the third-generation succession of CJ owners.
CJ CheilJedang management leader Lee Sun-ho (33), the eldest son of CJ Chairman Lee Jae-hyun, needs more funds to complete the succession. He is expected to complete the succession by securing cash by using his 11% stake in CJ Olive Young's IPO process to generate sales of old shares or selling shares after listing. In fact, during Olive Young's pre-listed equity investment (free IPO) process in 2021, the management leader disposed of his 6.88% stake in CJ Olive Young and secured 101.8 billion won in cash. His CJ stake steadily increased from 2.75% of ordinary shares and 25.16% of new preferred shareholders in the third quarter of 2021 to 3.2% of common shares and 29.13% of new preferred shareholders in the third quarter of this year. The new preferred owner does not have voting rights and can be converted into ordinary shares 10 years after issuance.
Market watchers say the FTC's decision will help raise funds for the succession as CJ Olive Young, a cash cow, avoided fines.
Olive Young has been cruising nearly 40% higher than the same period last year, with cumulative sales of more than 2.7 trillion won by the third quarter of this year. On the other hand, some analysts say that if the actual trial proceeds due to the FTC's complaint, the listing may be delayed for a considerable period of time again, which will be a negative factor.
AlphaBIZ 김지선(stockmk2020@alphabiz.co.kr)
