OEP Earns 1.7 Trillion Won from Investing in Celltrion Healthcare

[Asia Economy Reporter Koh Hyung-kwang] One Equity Partners (OEP), a global private equity firm formerly affiliated with JP Morgan, has sold all of its remaining shares in Celltrion Healthcare. The amount secured through six block deals over three years since September 2018 exceeds 2 trillion won. Considering that OEP invested about 300 billion won in 2012 and 2013 before Celltrion Healthcare's listing, it has earned a profit of 1.7 trillion won in less than eight years.

According to the financial investment industry on the 12th, OEP disposed of all 3.16 million shares of Celltrion Healthcare on the 7th through a block deal (off-hours large volume trade). The selling price was between 100,000 and 102,500 won, applying a 4.7~7% discount to Celltrion Healthcare's closing price of 107,500 won. The total sale amount reached 310 billion won. With this transaction, OEP completely liquidated its remaining shares in Celltrion Healthcare and fully parted ways with the company.

OEP invested in Celltrion Healthcare in January 2012, when Celltrion was overlooked by domestic institutional investors. It purchased 25 million redeemable convertible preferred shares (RCPS) for 254 billion won, before Celltrion's first biosimilar, Remsima, received domestic approval. The following August, OEP invested a total of 300 billion won by acquiring bonds with warrants (BW) and convertible bonds (CB). At that time, OEP held a 30% stake, making it the second-largest shareholder after Celltrion Chairman Seo Jung-jin.

After Celltrion Healthcare was listed on the KOSDAQ market in July 2017, OEP began realizing profits in earnest. From September 2018 over three years, it secured 2.02 trillion won through six block deals. This year, amid increased uncertainty in global stock markets due to the COVID-19 pandemic and the continued strength of Celltrion Group stocks, OEP conducted three block deals. Following 270 billion won in April and 350 billion won in May, it cashed out 930 billion won this year alone by selling all remaining shares in this latest transaction.

With OEP's share sale, Ion Investment, affiliated with Singapore's sovereign wealth fund Temasek and previously the third-largest shareholder, rises to the second-largest shareholder position. Its holding ratio is 9.38%. The largest shareholder, Celltrion Chairman Seo Jung-jin, holds 35.49% of the shares.