Several private equity funds were shortlisted in a heated race over stake offering from owner family members in South Korea’s biggest health and beauty chain store CJ Olive Young Corp. eying an initial public offering (IPO) in 2022.

According to sources from the investment banking industry on Tuesday, CJ Olive Young and its sale advisor Credit Suisse have so far shortlisted five to six private equity funds (PEFs) including STIC Investment, Glenwood Private Equity and JKL Partners out of more than 20 bidders in the tender,

The pre-IPO offering involves 20 to 30 percent in Olive Young owned by CJ Group’s family members. Chairman Lee Jay-hyun’s eldest son Lee Sun-ho holds a 17.97 percent in CJ Olive Young, his younger brother Jae-hwan 10.03 percent and eldest daughter Kyeong-hoo 6.91 percent. The offspring are reportedly surrendering some of their shares to set aside for inheritance tax.

To add appeal to the tender, the company has promised to go public in 2022.

CJ reportedly is asking for around 300 billion won ($266 million) for the stake by pitching Olive Young pre-IPO value at minimum 1 trillion won.

By Kang Doo-soon, Park Chang-young and Choi Mira

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