[Featured Stock] CJ CheilJedang Rises on Bio Business Unit Sale Prospects

CJ CheilJedang is showing strength in early trading as it is reported to be pursuing the sale of its bio business division.

At 9:19 AM on the 19th, CJ CheilJedang was trading at 270,000 KRW, up 4.85% from the previous trading day.

According to the investment banking (IB) industry, CJ CheilJedang has selected Morgan Stanley as the lead manager for the sale of its bio business division and is in contact with potential acquisition candidates. The estimated valuation is 6 trillion KRW.

In response, Kim Jung-wook, a researcher at Meritz Securities, stated, "Although the value may change during the actual sale process, the issue of pursuing the sale itself is positive news." He analyzed that the decision to focus and select, especially on K-food within the food sector, has begun through the sale of non-core affiliates that has continued since last year. He also judged that if the sale of the bio business improves the financial structure and leads to mergers and acquisitions (M&A) to expand the global food business, the undervaluation in valuation could be resolved.