'The broader Samsung family' joins forces ... Shinsegae joins the race to acquire JoongAng Ilbo after CJ [fn Market Watch]

[Financial News] With Shinsegae joining the race to acquire JoongAng Ilbo after CJ Group, a framework has emerged in which companies from the broader Samsung family are joining forces to pursue its acquisition. Companies led by the grandson and maternal granddaughter of the late Lee Byung-chul, founder of Samsung Group, are set to become new shareholders in JoongAng Ilbo, which he established.
According to investment banking (IB) industry sources on the 20th, Shinsegae Inc. will participate as an equity investor in the Daou Kiwoom-CJ consortium, which was selected as the preferred bidder for the acquisition of JoongAng Ilbo. Daou Kiwoom Group will lead the acquisition, with CJ Group and Shinsegae investing alongside it.
Rather than seeking to secure management control, Shinsegae will participate through a financial and strategic equity investment, and is expected to become JoongAng Ilbo’s third-largest shareholder once the acquisition is completed.
The key point of interest in this deal is the coming together of the broader Samsung family. JoongAng Ilbo is a media company founded in 1965 by Lee Byung-chul, founder of Samsung Group. CJ Group Chairman Lee Jay-hyun is his grandson, while Shinsegae Chairman Chung Yoo-kyung is his granddaughter through his daughter.
The historical ties between the broader Samsung family and JoongAng Ilbo are once again drawing attention as CJ and Shinsegae, each having become independent from Samsung Group, join the acquisition effort side by side. Shinsegae’s entry has also focused attention on potential business synergies after the acquisition. Building on its premium retail businesses, including department stores and duty-free shops, Shinsegae plans to pursue collaboration with JoongAng Ilbo’s media and content capabilities.
Shinsegae said it intends to respect JoongAng Ilbo’s distinctive identity and expertise while creating synergies by linking them with its own premium cultural platforms and lifestyle content.
Potential links with CJ Group’s content and media businesses are also being discussed. Accordingly, the acquisition could expand beyond a simple change-of-control deal involving a media company into a strategic investment combining retail, content and media.
Daou Kiwoom Group initially sought to acquire JoongAng Ilbo on its own, but joined forces with CJ Group ahead of the final bidding. With Shinsegae also joining, the number of companies pursuing the acquisition has grown to three. The consortium’s proposed acquisition price is reported to be in the 500 billion won range.
[email protected] Kim Hyun-jung Reporter