To Accelerate Growth
CJ CheilJedang announced on July 31 that it has sold its entire stake in the Chinese food subsidiary Jixiangju. This is a strategic move to accelerate the growth of K-food and strengthen financial soundness through “selection and focus.”
The sale price is approximately 300 billion won, and the buyers are multiple Chinese institutional investors and the existing second largest shareholder of Jixiangju. CJ CheilJedang had previously acquired a 60% stake in Jixiangju for about 38.5 billion won in 2011 and 2016, and last year’s sales of Jixiangju were approximately 209.1 billion won (US$163.5 million).
Following the sale of its stake in Jixiangju, CJ CheilJedang plans to focus on expanding the K-food business centered on the “bibigo” brand.
The company plans to expand the Global Strategic Product business, which recorded approximately 165 billion won in sales in China last year, a 33% increase from the previous year, and also strengthen online channels.