Member Firms Assist in Acquisition
Acquisition by CJ CheilJedang of Selecta, a Brazilian manufacturer of high-protein vegetable ingredients
CJ CheilJedang has successfully acquired 90% of the shares in Selecta, a Brazilian company that manufactures soy protein concentrate (“SPC”), at the price of approximately KRW 360 billion (USD 321 Million ) (the “Transaction”) from individual shareholders. Selecta is a global leader in the production of SPC, a high-protein vegetable ingredient, and since its establishment in 1985, the company recorded about KRW 400 billion in sales and KRW 55 billion in operating profits as of 2016. By acquiring such company through the Transaction, CJ CheilJedang will be able to not only build up a business structure producing both soy protein concentrate and FSM or fermented soybean meal, which are representative high-protein vegetable feed ingredients, but also establish a solid foundation to create a synergy effect with its existing business sectors such as bio and biological resources, etc.
As legal advisor to CJ CheilJedang, Bae, Kim & Lee LLC provided the Client with comprehensive legal advisory services, including review of deal structures, review of regulations relating to acquisition and transfer of shares of a Brazilian company, legal due diligence on Selecta, preparation of and negotiation for the share purchase agreement, shareholders’ agreement and any other incidental documents, review of the need for the reporting of the business combination in various countries in the world, performance of the procedures therefor (if necessary) and assistance to the closing of the Transaction, etc., and as lead counsel, also worked in close cooperation with a local law firm in Brazil. Bae, Kim & Lee LLC advisory team was able to contribute to the successful closing of the Transaction within the limited time frame by proactively taking prompt, proper and effective actions with respect to various issues.
CMS Germany, one of WLG’s member firms for Germany, acted as the legal advisor in relation to the merger notification issue.