Beauty chain CJ Olive Young’s pre-initial public offering (pre-IPO) is expected to be accelerated after the final round of bidding takes place in mid-December, with potential buyers asking for more information so they can evaluate the company.
Shortlisted bidders are expected to have interviews with management next week, industry sources said on Friday (November 13). They will then consider price and non-price terms that they will offer in the final round of bidding, slated for December 10.
With the timeline starting to be set, potential buyers are moving fast to value CJ Olive Young. They are conducting due diligence in a virtual data room and requesting documents to obtain a better understanding about the company.
However, there is a possibility the final round of bidding may be delayed, as potential buyers are widely demanding more time and information for due diligence.
Several strategic and financial investors said they need more information, while the seller said it is responding to bidders’ requests unless the material is sensitive.
Industry insiders said owner CJ Group’s difficulty in selling bakery chain division Tour Les Jours may have impacted the beauty chain deal. CJ Foodville has postponed the final round of bidding for the chain after failing attract any bids. Critical information on the firm has spread during the sale process, but potential buyers have still not confirmed their participation.
Shortlisted bidders of CJ Olive Young’s pre-IPO include Anchor Equity Partners, IMM Private Equity, STIC Investment, JKL Partners, Glenwood Private Equity and Hyundai Department Store Group. Credit Suisse and Shinhan Investment are managing the deal.
CJ Group, the South Korean food and entertainment conglomerate, is selling a minority stake in CJ Olive Young, including a 17.97% shareholding held by Lee Sun-ho, the only son and heir apparent of group chairman Lee Jae-hyun, and a 10% stake owned by the chairman’s younger brother Lee Jae-hwan. (Reporting by Ar-rum Rho)