Six companies have joined the bidding to acquire JoongAng Ilbo, the newspaper publisher currently undergoing a corporate workout: Global Sae-A, OK Financial Group, Daou Tech, Orion, E Broadcasting and Keumbo Development. All six have been named to the shortlist of qualified bidders and will conduct due diligence through the middle of next month.
Global Sae-A, OK Financial Group, Daou Tech, Orion, E Broadcasting and Keumbo Development were selected as qualified bidders, according to investment banking sources on the 22nd. Most of the companies that took part in the preliminary bidding made the shortlist after being assessed on their ability to raise funds and their commitment to the deal, and they will carry out due diligence on JoongAng Ilbo through Oct. 16.
Because the sale is structured as a third-party allotment of new shares, the winning bidder will become the largest shareholder by subscribing to newly issued stock. Proceeds from the share purchase will flow directly to JoongAng Ilbo rather than to existing shareholders and will be used to repair its balance sheet, making financing capacity a key variable, analysts said.
Global Sae-A has expanded around Sae-A Trading, an apparel original equipment manufacturer, through successive acquisitions of Taelim Packaging, Ssangyong Engineering & Construction and Jeonju Paper. Acquiring JoongAng Ilbo would allow vertical integration with Jeonju Paper, its paper-manufacturing affiliate. OK Financial Group, which was recently named preferred bidder for Yebyeol Insurance, formerly MG Non-Life Insurance, plans to expand its business by acquiring the newspaper.
Daou Tech, the largest shareholder of Kiwoom Securities (039490.KS), runs media-related operations including the webtoon platform Kidari Studio. Orion operates Showbox, a film investment and distribution company. Also taking part in the preliminary bidding were E Broadcasting, which runs the YouTube channel 3PRO TV, and Keumbo Development, operator of Nambu Country Club and the Orakai hotel chain.
