Termination of Agreement with Bunge Subsidiary
Uncertainty Over Fulfillment of Transaction Conditions
CJ CheilJedang has withdrawn from the agreement to sell its stake in its Brazilian subsidiary, CJ Selecta.
According to the Financial Supervisory Service's electronic disclosure system on April 29, CJ CheilJedang announced on April 25 that it had terminated the share purchase agreement (SPA) with Bunge Alimentos S.A., a subsidiary of the U.S. grain company Bunge.
The company stated, "We notified the termination of the contract as the likelihood of fulfilling the conditions precedent for the transaction became uncertain," adding, "To resolve this uncertainty and focus on stable business operations, we exercised our contractual rights and decided to terminate the agreement."
CJ Selecta is a Brazilian soy protein concentrate (SPC) company acquired by CJ CheilJedang in 2017. In October 2023, CJ CheilJedang announced that it would sell its entire 66% stake in CJ Selecta to Bunge Alimentos S.A. The expected sale amount was 480.5 billion KRW. At the time, CJ CheilJedang explained that the sale was aimed at advancing its bio business portfolio and enhancing management efficiency.
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