CJ ENM, Establishing New Corporation Through Physical Division

[Asia Economy Reporter Minji Lee] CJ ENM announced on the 19th that it plans to establish a new corporation through a simple physical division method as stipulated in Articles 530-2 and 530-12 of the Commercial Act. The business division subject to the split includes the main production functions of entertainment, drama, film, and animation businesses.

The company stated, "This is to establish an efficient multi-studio system to strengthen global content production capabilities," and added, "It aims to expand global K-content production and maximize profit businesses such as IP distribution." The company also explained, "The details of the assets to be transferred by the split, the nature of the business, contracts and rights, responsibilities, and obligations have not been finalized."

On the same day, the company announced that it is pursuing a deal to acquire an 80% voting stake in Endeavor Content. To this end, CJ ENM USA Holdings LLC, established through CJ ENM USA INC., a special purpose entity in the United States, plans to enter into a share purchase agreement with IMG Worldwide, which holds 100% of Endeavor Content's shares. The total acquisition amount is 915.2 billion KRW, accounting for 14.6% of the company's total consolidated assets.

The company participated in a paid-in capital increase of its U.S. subsidiary CJ ENM USA INC., acquiring 100% of the company's shares for approximately 935 billion KRW. To finance this, the company decided to increase short-term borrowings by about 900 billion KRW through commercial paper and financial institution loans.

This content was produced with the assistance of AI translation services.