JoongAng Ilbo has selected a preferred negotiator for its management rights acquisition, while the sale announcement for its affiliate JTBC is expected to be postponed until next month.
According to Yonhap News, although the decision to sell JTBC has been made, the specific sale method has not yet been determined, and the sale process is ongoing as potential buyers' reactions are assessed.
On October 20, an investment banking industry source indicated that the announcement regarding JTBC's sale could be delayed until next month.
JTBC had previously announced on October 14 that it had selected Samil PwC as the sale advisor and planned to issue a sale announcement within this month. However, discussions regarding the public competitive bidding and stalking horse methods are still ongoing, and the specific sale procedures have not been finalized.
The stalking horse method involves pre-selecting a buyer and entering into a conditional agreement before proceeding with a public auction. The sale advisor is currently in contact with potential buyers to gauge their interest and assess market reactions. Based on this feedback, JTBC is expected to finalize the sale method and proceed with the announcement in accordance with court procedures.
The differing sale processes for JoongAng Ilbo and JTBC stem from their respective rehabilitation methods. JoongAng Ilbo is pursuing a sale through a creditor-led corporate restructuring process, while JTBC must determine its sale method and timeline in accordance with court-ordered corporate rehabilitation procedures.
JoongAng Ilbo is accelerating its sale process. In the main bidding that closed the previous day, six entities participated, including Daou Kiwoom Group, Orion, Global Seah, OK Financial Group, E-Broadcasting, and Geumbo Development. Daou Kiwoom Group, which formed a consortium with CJ Group, JoongAng Ilbo's third-largest shareholder, was selected as the preferred negotiator.
The urgency of securing liquidity through the sale is also influenced by the burden of repaying corporate bonds. JoongAng Ilbo has issued corporate bonds totaling 147.4 billion won, which will begin maturing next month and continue until the end of next year.
The sale status of other affiliates within JoongAng Group remains uncertain. Among the five affiliates that have applied for corporate rehabilitation, only JTBC has established a sale plan. The sale status of Contentree JoongAng and JoongAng P&I has not been determined, while Megabox JoongAng is undergoing an investigation to assess its sale potential.
SL Central is pursuing a sale, but negotiations have reportedly stalled due to disagreements between the seller and potential buyers regarding the company's valuation. As a result, it remains unclear whether the sale will continue or if a recovery plan will be developed to maintain the company.
The outcome of SL Central's sale is expected to influence the future direction of its parent company, Contentree JoongAng. If the sale of SL Central is successful, it is likely that Contentree JoongAng will not pursue a separate sale process.
* This article has been translated by AI.
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