(image: CJ Logistics Corp.)
SEOUL, Dec. 19 (Korea Bizwire) — CJ Logistics Corp., the logistics arm of South Korea’s food and entertainment conglomerate CJ Group, said Tuesday it will absorb and merge with the group’s construction unit as part of efforts to hone its competitiveness.
The merger ratio will be one CJ Logistics share for every 0.54 CJ Engineering & Construction Corp. share, the logistics company said in a regulatory filing.
CJ Logistics said that it will give 529,398 of its shares worth 80.3 billion won (US$73.9 million) to CJ Corp., the group’s holding firm with a 99.9-percent stake in CJ Engineering & Construction, in return for the merger.
After the merger, CJ Logistics added that it will take over the business of CJ Engineering & Construction.
CJ Logistics expected the merger to help the company to provide better service by combining its capability to design advanced logistics centers and operational know-how with the construction unit’s strength of building distribution facilities.
The merger will also likely to create synergy by meeting in-house demand for the construction of logistics centers, said CJ Logistics, which is currently building a mammoth logistics hub for door-to-door delivery on a site some 50 kilometers southeast of Seoul, it added.
Established in 1995, CJ Engineering & Construction posted an operating profit of 12.2 billion won on sales of 642 billion won last year.
(Yonhap)
