CGV seeks to raise ￦1T worth of capital

[CJ CGV]

CGV, a multiplex cinema chain affiliate of CJ, will raise capital worth 1 trillion won ($776 million) to stabilize its financial structure by selling its own stock and that of other CJ subsidiaries.

The CGV board decided to issue new shares worth 570 billion won on Tuesday. Seventy-four million four hundred thousand shares will be issued at a price of 7,630 won per share.

The newly-issued stock will be available from September onwards.

CJ Corporation, CGV's parent company, will buy 60 billion won of the newly-issued shares and will allocate 450 billion worth of its shares in CJ OliveNetworks via a stock swap deal to CGV.

A combined 1 trillion won is being injected to the multiplex chain, the company explained.

“The end of Covid-19 is leading to more moviegoers, and demand for special screenings such as 4DX, Screen X was well as livestreaming of concerts and sports is rising,” a CGV spokesperson said in a statement.

“We will continue to provide new immersive activities that moviegoers can experience in a theater, and promote new businesses in our project to become ‘the next CGV.’”

The multiplex chain aims to revamp its theater business whereby moviegoers can not only view films, but enjoy a multi-space for immersive and interactive experiences related to leisure, entertainment, and culture.

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]