S Korea’s CJ Logistics nearing $1.1b sale of China unit to FountainVest

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South Korea’s CJ Logistics Corp. is nearing a deal to sell its Chinese unit CJ Rokin Logistics Supply Chain Co. to FountainVest Partners, according to people familiar with the matter.

Negotiations on the final terms for the Shanghai-based unit are advanced and an announcement could come as soon as in the next few days, the people said, asking not to be identified as the discussions are private. A deal could value Rokin at about $1.1 billion, the people said. FountainVest is considering bringing in co-investors to take minority stakes in the company, they said.

Talks could be delayed or fall apart, and other bidders remain interested in the asset, the people said. A representative for CJ Logistics declined to comment. A representative for FountainVest did not immediately respond to requests for comment.

CJ Rokin owns more than 400 cold chain vehicles and more than 320,000 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.

CJ acquired Rokin in 2015 for 455 billion won ($411 million) and said it would invest a further 312 billion won. CJ Rokin is part of South Korean conglomerate CJ 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.

Bloomberg

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.