CJ, Daou Kiwoom may team up for JoongAng Ilbo bid
Headquarters of JoongAng Ilbo / Korea Times file
Speculation is growing that CJ Group could team up with Daou Kiwoom Group to bid for control of JoongAng Ilbo, as the newspaper publisher seeks a buyer amid a liquidity crisis at its parent group.
According to industry sources Friday, CJ is reportedly considering forming a consortium with Daou Kiwoom to participate in the final round of bidding for the newspaper. The deadline for final bids is on Oct. 19.
CJ holds a 9.24 percent stake in JoongAng Ilbo through its affiliate CJ OliveNetworks, potentially giving the group an existing foothold in the acquisition process.
JoongAng Ilbo entered a workout program in July amid liquidity pressures at some affiliates of JoongAng Group. The newspaper publisher is pursuing the sale of its management rights and other restructuring measures to restore its financial health.
The company said in a statement on Sept. 29 that it aims to select a preferred bidder by the end of October.
Six companies reportedly participated in the preliminary bidding last month: Global Sae-A, Geumbo Development, Daou Technology, Orion, OK Financial Group and eBroadcasting.
A workout is a creditor-led debt restructuring process that allows a company to negotiate with lenders while retaining greater control over its restructuring than under court-supervised rehabilitation.