Accra:Creditors of JoongAng Ilbo Co. have chosen the DaouKiwoom-CJ consortium as the preferred bidder for the major South Korean newspaper publisher. The decision came as bidding closed for the debt-laden company, industry sources revealed.
According to Yonhap News Agency, the DaouKiwoom-CJ consortium outbid competitors, including Orion and four other parties, in the race to acquire JoongAng Ilbo. The deal is estimated to be valued between 400 billion won (approximately US$300 million) and 500 billion won.
JoongAng Ilbo entered a debt workout program in July, managed by its main creditor Hana Bank and other lenders, due to liquidity issues faced by its parent company, JoongAng Group. This program has temporarily halted creditors' debt collection for three months, helping the company avoid court-led rehabilitation proceedings.
JoongAng Holdings, which controls a 64.7 percent stake in JoongAng Ilbo, is under the control of the founding family of JoongAng Group.