SEOUL, November 19 (AJP) - South Korea's leading food manufacturer CJ CheilJedang has selected Morgan Stanley as the lead manager to sell its bio business division, according to media reports.
The sale, reported by the Investment Bank on Monday, could fetch several trillion won with the proceeds expected to be used for future mergers and acquisitions to strengthen the company's global food business operations.
The move comes as part of CJ CheilJedang's broader strategy to restructure its business portfolio, focusing on its core food operations.
Shares of CJ CheilJedang rose as much as 6.41 percent to 274,000 won (US$196) in early trading on the Korea Exchange.
"The sale itself is positive news, as it demonstrates the company's commitment to concentrating on its K-food business, which began with non-core subsidiary divestitures last year," said Kim Jung-wook, an analyst at Meritz Securities.
The Korea Exchange has requested CJ CheilJedang to clarify the reports by 6 p.m. local time.
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