THE KOREA ECONOMIC DAILY, GLOBAL EDITION

CJ Logistics Corp. is seeking to sell its profit-making construction business as part of its parent group’s restructuring scheme.

The logistics services unit of CJ Group has selected Swiss-based investment bank Credit Suisse as its sale advisor and is contacting potential buyers, according to investment banking industry sources on August 20. The deal, if successful, would fetch between 200 billion won ($168 million) and 300 billion won ($253 million), they said.

CJ Logistics’ construction unit is specialized in logistics warehouses and R&D centers. According to the Ministry of Land, Infrastructure and Transport, the company ranked 49th in the performance evaluation of construction projects in 2019. But in the construction of logistics storage centers, CJ ranked sixth.

Industry watchers say private equity funds (PEFs) and mid-sized builders are expected to show interest in CJ Logistics’ construction unit, given the rapid growth of parcel deliveries amid the COVID-19 pandemic.

In the second quarter of this year, CJ Logistics recorded an operating profit of 83.9 billion won, above market consensus, on increased parcel delivery demand.