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| Parcels move on rollers at CJ Logistics' distribution center in Gimpo, Gyeonggi Province, on Sept. 23. / Yonhap |
By Kim Jae-heun
CJ Group is in talks with the country's internet portal giant Naver under which the latter will acquire between 10 percent and 20 percent in the former's logistics unit.
"In line with plans for exploring new business models, CJ is in talks with Naver to advance the relationship, comprehensively and also thoroughly, including a plan for stock swap," CJ said, Wednesday.
Regarding the possible stock investment in CJ, Naver said it is on track to acquire a stake in CJ's logistics affiliate. However, Naver said details on when, how and the target amount of CJ stocks have yet to be fixed.
"We are platform operators and we want to pursue business that can create synergy with CJ Group," a Naver official said. Naver owns 11.51 percent of shares in itself valued at about 5.57 trillion won.
Naver is said to acquire between 10 percent and 20 percent in CJ Logistics, as Naver is considering spending up to 800 billion won.
"Both companies have their own strengths. Our fields of expertise lie in cultural content and distribution systems. Naver has an advantage in the e-commerce and platform businesses. Both firms can build a win-win relationship taking advantage of each other's expertise," a CJ Group official said.
Naver has been seeking a partner with strength in logistics amid the fast-growing online shopping business. CJ Logistics, which is the top player in the sector, has a lot to gain in collaboration with the platform operator too.
Currently, the top two stockholders of CJ Logistics are CJ CheilJedang which owns 40.16 percent of shares and CJ Group with 20.42 percent. Naver is planning to acquire from half up to the entire 20.42 percent of CJ Logistics shares, worth about 868.8 billion won.
"The stock swap deal will put the two companies on even footing to collaborate closely. It will also give them voting rights on their business management as shareholders of each other. This will lead to a rise in the stock price of the two companies in the long run," an industry source said.
CJ Logistics has already been providing Naver with a fulfillment center in Gwangju, Gyeonggi Province, since 2018 to cope with its rapidly increasing e-commerce business.
Naver Shopping's gross merchandise value this year has skyrocketed by 50 percent compared to in 2019.
"The two companies have already been working closely. They only have a final decision to make in terms of establishing an ever closer business partner relationship," the source said.
