Jeongyukgak Selected as Preferred Negotiation Partner for Sale of Daesang Group's 'Chorokmaeul'

[Asia Economy Reporter Eunmo Koo] Chorokmaeul, an organic food distribution company under the Daesang Group, is expected to be sold to the livestock distribution startup 'Jeongyookgak.'

Daesang Holdings, the holding company of Daesang Group, announced on the 2nd through a public disclosure that "Jeongyookgak has been selected as the preferred negotiation partner for the sale of Chorokmaeul." The two companies plan to finalize the stock purchase agreement around mid-month after negotiating detailed terms such as the acquisition price. Previously, Daesang Holdings had disclosed last month that it was "pursuing a strategic alliance or equity sale regarding Chorokmaeul."

The sale includes 49.10% of Daesang Holdings' shares, as well as 99.57% of shares held by related parties (Se-ryeong Lim, Vice Chairman of Daesang Holdings and eldest daughter of honorary chairman Chang-wook Lim of Daesang Group, 30.17%; Sang-min Lim, Executive Director of Daesang Holdings and second daughter, 20.31%). The exact acquisition price has not been disclosed, but it is known to be around 150 billion KRW.

Chorokmaeul, established in 1999, is an eco-friendly organic distribution company that sells organic agricultural products at over 400 stores nationwide. Chorokmaeul's sales in 2020 were 192.7 billion KRW, an increase of about 18% compared to the previous year, while operating losses amounted to 3.3 billion KRW.

According to industry sources, Market Kurly and Barogo also participated in the bidding for Chorokmaeul, but Jeongyookgak was selected as the preferred negotiation partner by offering the highest price.

Jeongyookgak, founded in February 2016 by CEO Jaeyeon Kim (born in 1991), is an online platform company specializing in fresh meat, distributing fresh livestock products such as pork within four days of slaughter and eggs on the day of laying. Through the acquisition of Chorokmaeul, Jeongyookgak will secure an offline distribution network and expand its product range from meat such as pork to eco-friendly agricultural products.

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