South Korean food company CJ CheilJedang Corp. sold off 2,985,850 shares in Samsung Life Insurance Co. at 358 billion won ($312.6 million), leaving zero holding in the country’s largest insurer to improve its balance sheet and stock cash reserves for future investment.
In a disclosure on Wednesday, the company said it sold the shares in a block trade each at 119,800 won, 3-percent discounted from Tuesday’s closing price. Underwriters were Citigroup Global Markets Korea Securities, HSBC and BNP Paribas. The transaction would be completed on Friday.
Since 2013, the food company has been unloading the shares in Samsung Life it purchased in 2011. It cashed in its stockholding for about 1 trillion won.
The company is expected to use the proceeds for overseas mergers and acquisitions.
It bought Brazilian soy product supplier Sementes Selecta last year and Russian dumpling manufacturer Ravioli last month.
Shares of CJ CheilJedang closed Wednesday at 355,500 won, up 1.43 percent from the previous session. Shares of Samsung Life fell 1.62 percent at 121,500 won.
By Kang Doo-soon and Han Woo-ram
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