According to investment banking sources on the 22nd, Samil PwC, the sale's lead manager, selected Global Sae-A and OK Financial Group, which submitted letters of intent, for the shortlist. After assessing funding capacity and acquisition intent, most of the companies that took part in the preliminary bidding were included on the shortlist, sources said.
The qualified bidders will conduct due diligence on Joongang Ilbo through the 16th of next month. Joongang Ilbo plans to wrap up the sale process within the year.
Because the sale will be carried out through a third-party share allotment, the final buyer will acquire newly issued Joongang Ilbo shares and become its largest shareholder. Since proceeds from the new shares will flow directly to Joongang Ilbo rather than existing shareholders and be used to shore up its finances, many see funding capacity as the key variable.
Global Sae-A has grown around apparel original equipment manufacturer Sae-A Trading, successively acquiring Taelim Packaging, Ssangyong Engineering & Construction and Jeonju Paper. An acquisition of Joongang Ilbo would allow vertical integration with paper affiliate Jeonju Paper. OK Financial Group entered the Joongang Ilbo race after being named preferred bidder for Yebyeol Property & Casualty Insurance. E-Broadcasting, which operates the YouTube channel "3PROTV," and Kumbo Development, which runs Nambu Country Club and the Orakai Hotel, also took part in the preliminary bidding.
Harim, Booyoung Construction, Sinokor Merchant Marine, Hoban Construction, SM Group, KG Group, Eugene Group and Hansae Group — all previously reported to have strong interest in acquiring Joongang Ilbo — said on the same day that they did not participate in the preliminary bidding.
