South Korea’s CJ Group splits

Divides into holding, operating company

South Korean conglom the CJ Group will split into a holding company and an operating company Sept. 1, as part of a drive to improve corporate governance.

The holding company, CJ Corp., will include media and food affiliates such as CJ Entertainment, CJ Media, CJ Home Shopping and CJ Food System. Pharmaceutical and feed divisions will be grouped under the operating company, CJ Food.

CJ plans to amass more than 20% of its own stock over two years, and subsidiaries of the CJ Group will eliminate cross-shareholding.

Current CJ shareholders will receive 63 shares of the holding company and 37 shares of the operating company for every 100 current shares. The planned split must be approved by shareholders on July 26.

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