Daou Kiwoom-CJ consortium selected as preferred bidder for JoongAng Ilbo

A consortium of Daou Kiwoom Group and CJ Group has been selected as the preferred bidder to acquire control of JoongAng Ilbo.

After entering a corporate workout in July this year, JoongAng Ilbo has pursued a sale of control led by its main creditor bank, Hana Bank.

The sale will take the form of a capital increase through a third-party allotment of new shares. The subscription proceeds will flow directly into JoongAng Ilbo and are intended for debt repayment and other measures to improve its financial structure.

The Daou Kiwoom-CJ consortium is expected to sign a conditional new-share subscription agreement. It plans to complete the acquisition after subsequent procedures involving the financial creditors' council and a bondholders' meeting, among others.

Samil Accounting Corporation said its comprehensive assessment covered not only the acquisition price but also financing capacity, effects on the financial structure and employment stability.