JTBC Launches Open Competitive Sale Process Under Corporate Rehabilitation
The corporate rehabilitation process moves forward as Ernst & Young Han Young manages an open tender to find a new owner by January.
JTBC has formally launched an open, competitive tender to sell its management control while undergoing corporate rehabilitation. EY Hanyoung Accounting Corporation, acting as the sale manager, published a public notice detailing the procedures to attract external capital through a third-party allotment paid-in capital increase and bond issuance.
According to the schedule outlined in the notice, letters of intent will be accepted through next month. Preliminary due diligence for qualified candidates is planned, followed by a main bidding deadline. The selection of a preferred buyer candidate is scheduled to take place in January.
Rather than a traditional transfer of existing shares, the transaction is structured around injecting fresh capital into the company under rehabilitation to secure management control. Investment banking sources indicate that creditors are seeking a sale price of approximately 500 billion won to entirely repay the company's debt through a third-party share placement.
The sale encompasses JTBC along with its affiliated entertainment and lifestyle channels, JTBC2 and JTBC4. Meanwhile, entities operating JTBC Golf and JTBC Sports are separate and remain excluded from the current transaction. Market observers have noted potential interest from entities such as Hoban Group, Taekwang Industrial, and OK Financial Group.
The enterprise value of the company is estimated at over 700 billion won, which accounts for net debt and the value of a 100 percent stake. Total debt has been estimated at about 960 billion won due to public bonds held by retail investors and obligations connected to International Olympic Committee broadcasting rights. Debt adjustments and a capital reduction on existing shares are expected to significantly reduce the stakes of current major shareholders like JoongAng Holdings.
JTBC encountered liquidity pressures driven by declining television advertising revenues, mounting production expenses, and the financial weight of broadcasting rights. After failing to resolve certain debt obligations, the Seoul Bankruptcy Court approved the initiation of rehabilitation proceedings.
Representatives from JTBC emphasized that the sale will proceed transparently and fairly in alignment with applicable legal standards and bankruptcy court directives. Officials stated that the mergers and acquisitions process aims to establish a solid foundation for sustainable growth and enhance the competitiveness of the network's channels and content.