CJ Olive Young Acquires Treasury Shares Through Call Option Exercise... Holding Stake at 22.58%

Olive Young to Acquire 11.28% Stake Held by Korea Beauty Pioneer
Expected to Ease Financial Burden and Strengthen CJ's Control as Largest Shareholder

CJ Olive Young will purchase company shares held by the special purpose company 'Korea Beauty Pioneer' as treasury stock.

CJ Olive Young store. Provided by CJ Olive Young

According to industry sources on the 14th, Olive Young has decided to acquire 11.28% of its treasury stock held by Korea Beauty Pioneer ahead of schedule. Korea Beauty Pioneer is a special purpose company established by Shinhan Investment Corp. and Shinhan Bank. Olive Young had a call option to purchase the shares held by Korea Beauty Pioneer within three years, but it decided to exercise this option within one year.

In April of last year, the special purpose company 'Korea H&B Holdings' of the private equity firm Glenwood Private Equity (PE) sold half of its 22.56% stake in Olive Young to Olive Young itself, and transferred the remaining shares to Korea Beauty Pioneer.

Olive Young plans to exercise the call option using retained earnings. With this acquisition, Olive Young's treasury stock holding ratio will increase from the existing 11.29% to 22.58%. A representative of Olive Young stated, "We have decided to acquire treasury stock, and the acquisition price will be finalized through a board meeting later. Through this, we expect to reduce financial burden and strengthen the controlling power of the largest shareholder over Olive Young." The largest shareholder of Olive Young is CJ, holding 51.15% of the shares.

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