The CJ Group turned heads when it announced its decision to sell CJ Healthcare, the healthcare division of the conglomerate that once neared public listing.
The group announced it would sell the division that CJ CheilJedang acquired through Yoopoong Pharmaceutical 33 years ago. CJ Group tapped Morgan Stanley to conduct the sale to potential bidders.
Industry insiders say the sell-off comes as a restructuring effort by CJ Group to concentrate efforts on the conglomerate’s competitive areas of logistics and art and culture.
Around seven domestic and foreign organizations participated in the preliminary tender for CJ Healthcare this month. Potential buyers included Kolmar Korea, MBK Partners, Bain Capital, Carlyle, TPG and CVC Capital. Of them, Kolmar Korea and SI Investments expressed intentions to buy, making them the strongest candidates. Bain Capital, which acquired Hugel, is also looking toward securing a pipeline by purchasing CJ Healthcare.
The CJ Group, which has a 100 percent stake in the healthcare division, is reportedly demanding 1.5 trillion won ($1.39 billion) for the unit.
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