CJ Daesul Stake Raised from 50% to 56%
Expanding Local Distribution Network and Investing in Next-Generation Technologies
Plans for Indian Stock Market Listing... Timing Undecided
CJ Logistics has moved to strengthen its control in India, one of its strategic countries, by increasing its stake in its local subsidiary. This move is interpreted as laying the groundwork by expanding its logistics network ahead of a planned stock market listing in India.
According to industry sources on May 27, CJ Logistics invested $32 million (approximately 44 billion KRW) on May 26 (local time) to acquire an additional 6% stake in CJ Daesul. Its ownership stake increased from 50% to 56%. The remaining 44% is held by the founding family of CJ Daesul and its affiliates.
CJ Daesul is CJ Logistics’ Indian subsidiary. Previously, CJ Logistics entered the Indian market in 2017 by acquiring a 50% stake in Indian logistics company Daesul Logistics. The company name was later changed to 'CJ Daesul.'
CJ Daesul provides comprehensive logistics services, including rail and sea transportation and contract logistics, based on more than 200 logistics hubs across India. The newly invested funds will be used to expand the distribution network and invest in next-generation technologies, such as smart warehouses, digital supply chain solutions, and the development of alternative fuel-based transportation platforms.
India, along with the United States, is one of CJ Logistics’ strategic countries. With the world’s largest population and an economic growth rate of 7.6% as of 2023, logistics demand is rising rapidly. CJ Logistics is accelerating the expansion of its logistics business, positioning India as a core hub of its global strategy.
CJ Daesul is also preparing for a local stock market listing. After announcing its listing plans at the end of 2023, CJ Logistics completed a preliminary review for listing in March the following year, aiming to go public within the year. However, the company decided to postpone the listing, judging that it was not the right time to receive a proper valuation. A CJ Logistics representative said, "The specific timing is undecided. We are reconsidering the listing schedule while monitoring local conditions."
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