An auction for selling a full stake in CJ HealthCare Corp., the pharmaceutical business arm of South Korean conglomerate CJ Group, has drawn multiple bidders from Korea and elsewhere, bringing the heat to the competition that could begin at more than 1 trillion won ($922.6 million).

According to industry sources on Monday, four companies including Kolmar Korea, Hahn & Company, CVC Capital Partners and Carlyle submitted a tender for the auction on CJ HealthCare whose full stake is placed up for sale by CJ CheilJedang. CJ CheilJedang and its sale advisor Morgan Stanley plan to pick a preferred bidder soon.

Kolmar Korea joined the auction by forming a consortium with Mirae Asset Private Equity, STIC Investments and H&Q Korea, and it aims to foster pharmaceutical business as its new growth engine after the acquisition.

Hahn & Company is also actively watching for a chance based on its track record of M&A deals including Ssangyong Cement Industrial and Hanon Systems.

CJ Healthcare has developed and distributed generic and novel drugs and health beverages. CJ Group wants to more focus on food, entertainment and other mainstay businesses by divesting the healthcare unit.

By Park Eun-jin and Lee Ha-yeon

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]