JoongAng Ilbo, which is undergoing a corporate workout with its creditor group, plans to pursue M&A (mergers and acquisitions) through a new share acquisition method via public tender.
According to media reports on the 2nd, JoongAng Ilbo explained the progress of the corporate workout, including these details, through an internal notice. The company stated, "On the 28th of last month, we selected Samil Accounting Firm as the lead M&A advisor and decided to proceed with an M&A through a new share acquisition method via public competitive bidding."
JoongAng Ilbo's management explained, "JoongAng Ilbo is the top revenue-generating company in the newspaper industry, having posted operating profits for 13 consecutive years. If we can overcome our financial crisis, we will be able to continue robust growth." They added, "As a measure to minimize creditor losses and achieve early normalization, we have decided to prioritize 'corporate workout based on M&A'."
Considering the rehabilitation procedures being undertaken by major shareholder JoongAng Holdings, the company decided to pursue M&A through a 'third-party allocation rights offering (paid-in capital increase) (new share acquisition method).' If the company issues new shares after designating an acquirer, the acquirer will purchase them to secure management control. To ensure fairness and objectivity, the acquirer will be selected through public competitive bidding.
Management stated, "M&A through new share issuance is a measure that can significantly improve the company's financial structure by injecting external funds, promote swift normalization of management, and minimize artificial restructuring." They further explained, "We have decided to M&A JoongAng Ilbo through 'public competitive bidding.' Advantages include 'unrestricted price competition,' 'inducement to form diverse consortia,' and 'discovery of potential strong acquirers.'"
The company stated that it explained the M&A plan with these details to the creditor group on the 1st and sought their approval, planning to start the M&A procedures from the 4th. The goal is to select a shortlist of potential acquirers by the end of this month and graduate from the corporate workout within the year.
in TECH
