Shinsegae will participate in the acquisition of JoongAng Ilbo with CJ Group. The Dowkium-CJ consortium was selected as the preferred bidder for the acquisition, and Shinsegae’s addition means companies tied to the Samsung family will pursue the deal together.

According to the related industry on Monday, Shinsegae will join the Dowkium-CJ consortium as an equity investor and seek to buy newly issued shares of JoongAng Ilbo. Shinsegae is taking part as a shareholder investor rather than seeking management control and is expected to become the third-largest shareholder after the acquisition, it is known.

Earlier, Samil PwC, the sale adviser for JoongAng Ilbo, selected the Dowkium-CJ consortium as the preferred bidder after a final bidding process on Oct. 19. Orion Holdings, Global Sae-A, OK Financial Group, E Broadcasting and Geumbo Development also participated in the bid.

Dowkium Group initially pursued a standalone acquisition but formed a consortium with CJ Group ahead of the final bid. With Shinsegae now joining, a structure has formed in which the three groups pursue the acquisition together.

The acquisition price proposed by the consortium is said to be around 500 billion won. The acquisition will be carried out through a third-party allotted paid-in capital increase, and the proceeds from the new share purchase are expected to be used to improve JoongAng Ilbo’s financial structure, including repaying debt. Stake ratios within the consortium have been discussed at around 50 percent for Dowkium, 30 percent for CJ and 20 percent for Shinsegae, but the specific investment amounts and equity structure have not been finalised.

Shinsegae, which is participating in the acquisition, is a department store-focused affiliate led by Chairwoman Yoo-kyung Chung (정유경) and is operated separately from the E-Mart affiliates led by Chair Yong-jin Chung (정용진). CJ Group already holds a 9.24 percent stake in JoongAng Ilbo through CJ OliveNetworks.

JoongAng Ilbo is a media company founded in 1965 by the late Samsung founder Byung-chul Lee (이병철). CJ Group Chairman Jae-hyun Lee (이재현) is the founder’s grandson, and Shinsegae Chairwoman Chung is his granddaughter through a daughter, meaning that if the acquisition is completed, companies tied to the Samsung family will participate as major shareholders of JoongAng Ilbo.

Shinsegae said it plans for the two companies to create synergy by linking JoongAng Ilbo with its premium cultural platforms and lifestyle content while respecting the newspaper’s distinctive identity and expertise.

JoongAng Ilbo entered a corporate workout in July and plans to improve its financial structure and pursue management normalisation through the sale. With the preferred bidder selected, negotiations are expected to proceed on detailed acquisition terms and the equity structure.