Seoul: South Korean food company CJ Cheiljedang Corp. announced it has sold its wholly owned livestock feed affiliate to a Dutch firm for 210.9 billion won (US$150 million) as part of a business reorganization. The sale involves a share purchase agreement with Royal De Heus to transfer CJ Feed and Care, which has an estimated corporate value of about 1 trillion won.

According to Yonhap News Agency, the valuation of CJ Feed and Care includes the unit's existing debts, operating value, real estate, and financial assets. The decision to sell the affiliate is aimed at helping CJ Cheiljedang concentrate on its core businesses, with intentions to foster growth and enhance its financial profile by reducing debt.

Royal De Heus, one of the world's 10 largest animal feed producers, operates in more than 70 countries, including regions in Europe, Asia, and the Middle East. This acquisition is expected to reinforce its presence and operations across these markets.

CJ Feed and Care reported an operating profit of 74.7 billion won on sales of 2.3 trillion won last year, reflecting its significant role within the industry prior to the transaction.