ADVERTISEMENT

CJ Weighs $1 Billion Sale of China Logistics Firm Rokin

CJ Weighs $1 Billion Sale of China Logistics Firm Rokin

South Korean conglomerate CJ Group is exploring a sale of its Chinese unit CJ Rokin Logistics Supply Chain Co., according to people familiar with the matter, as a surge in e-commerce fuels demand for assets in related sectors.

The Shanghai-based unit, which specializes in chemical and cold-storage transportation, could fetch as much as $1 billion in a sale, the people said. The group has received preliminary interest from potential buyers including other logistics firms as well as investment funds, the people said, asking not to be identified because the matter is private.

CJ Rokin owns more than 400 cold chain vehicles and more than 260,000 square meters of temperature controlled warehouse space, according to its website. Its customers include snacks and beverages giant PepsiCo Inc., Italian Nutella maker Ferrero Group and Swiss drugmaker Novartis AG. The company also operates more than 260 vehicles for hazardous materials. It was founded in 1985 by brothers Zhang Yurong and Zhang Yuqing, its website shows.

CJ acquired Rokin in 2015 for 455 billion won ($392 million) and said it would invest a further 312 billion won. CJ Rokin is part of the group’s CJ Logistics arm, which has units in the U.S., India, Vietnam, Malaysia and the United Arab Emirates, according to its annual report.

Shares in CJ Logistics climbed as much as 2% in early Wednesday trading in Seoul, while the benchmark Kospi index was down about 0.5%. The stock is up 17% in the year to date, giving the company a market value of $3.5 billion.

Sale considerations are preliminary and no final decision has been made, the people said. A representative for CJ Logistics couldn’t immediately comment on the matter.

Transportation and logistics companies have seen increased demand amid a boom in e-commerce, one of the beneficiaries of coronavirus-driven lockdowns. Private-equity firm MBK Partners is reviving its plan for a potential sale of Chinese freight forwarder Apex Logistics International Inc., in a deal that could value the firm at more than $1 billion, people with knowledge of the matter have said.

©2020 Bloomberg L.P.