JoongAng Ilbo is set to be acquired by the Daou-CJ consortium. The two sides will sign a share subscription agreement (SSA) worth 520 billion won on the 5th.
According to industry sources on the 4th, consortium members Daou Technology, Saramin, CJ, and Shinsegae held board meetings that day to approve the SSA for acquiring management rights of JoongAng Ilbo. JoongAng Ilbo also convened a board meeting on the same day to pass the relevant agenda.
The acquisition will proceed through a third-party allocation of new shares, with the acquirer injecting new funds. The Daou-CJ consortium is expected to become the new largest shareholder of JoongAng Ilbo through this share acquisition.
The total amount invested by the consortium for the new shares is 520 billion won, with the investment ratios being Daou Technology at 36.5%, Saramin at 13.7%, CJ at 35.7%, and Shinsegae at 14.1%.
All investment funds will flow into JoongAng Ilbo to improve its financial structure and alleviate debt risks. Following the decision of the Financial Creditors Council, the funds will be used to repay financial debts held by creditors and to settle public bonds held by bondholders after a lawful resolution at the bondholders' meeting.
The SSA also includes safeguards for job security and editorial independence. The Daou-CJ consortium has committed to guaranteeing employment for JoongAng Ilbo employees and to inheriting existing collective agreements. They plan to maintain a stable working environment without forced restructuring.
Freedom of the press and editorial independence will also be ensured. The consortium will comply with relevant laws and agreements regarding fair reporting and will not interfere improperly in reporting, commentary, or editing. Discussions will also be held to establish institutional measures for editorial independence.
JoongAng Ilbo plans to accelerate its exit from workout status through this agreement. The company aims to reduce financial burdens and enhance content competitiveness and management efficiency through capital expansion.
Park Jang-hee, CEO of JoongAng Ilbo, stated, "We will do our utmost to protect the rights and interests of creditors and investors who have trusted and supported JoongAng Ilbo, and we will strive for early normalization of management. Once the new governance structure is established, we will elevate our content competitiveness and management efficiency to a higher level, maintaining trust with readers and advertisers."
* This article has been translated by AI.
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