CJ CheilJedang (097950.KS) is pursuing a sale of its starch sweetener division, accelerating efforts to overhaul its business structure.
According to industry sources on the 28th, CJ CheilJedang is approaching major financial investors (FIs) about a carve-out sale of its starch sweetener division. The starch sweetener business uses corn starch as its main raw material to produce products such as corn syrup, glucose, and fructose. The industry estimates the division's earnings before interest, taxes, depreciation, and amortization (EBITDA) at approximately 30 billion won, with its enterprise value cited at up to around 300 billion won.
The sale is interpreted as a strategy to divest low-margin businesses and focus on future growth areas. Earlier this month, the company carried out a reorganization that restructured its existing food- and bio-centered business system into three pillars: "Life," "Technology," and "Core Materials."
"This is part of an effort to clean up marginal businesses with low growth potential and profitability from the perspective of future innovation," a CJ CheilJedang official said. "We are reviewing various options, but nothing specific has been finalized yet."
