Amorepacific Decides to Absorb and Merge Estra

[Asia Economy Reporter Seungjin Lee] Amorepacific Group announced on the 21st that it will absorb and merge its affiliate Estra.

Amorepacific stated, "We aim to strengthen competitiveness in the derma business and health functional food business in preparation for the rapidly growing derma cosmetic market," adding, "Through the absorption merger of the derma brand production and sales subsidiary, we will efficiently combine human and material resources to restructure the business and improve management efficiency. We expect this merger to ultimately have a positive impact on the company's finances."

Estra is a 'medical beauty' specialized company based on medical experience. It offers functional cosmetics that combine cosmetics and pharmaceuticals and sells products through hospitals and clinics rather than general distribution channels. It operates five core business sectors: anti-aging, derma care cosmetics (dermatological cosmetics), obesity, hair, and skin pharmaceuticals.

The company's predecessor was Taepyeongyang Pharmaceutical, which introduced hit products such as the arthritis treatment 'Ketotop' and the stomatitis treatment 'Albothyl.' It was delisted after being incorporated as a subsidiary of Amorepacific in 2013, and at the end of that year, its pharmaceutical business division was sold to Handok Pharmaceuticals.

The merger method involves issuing 413,814 shares of Amorepacific's treasury stock at a ratio of 0.1962185 shares of Amorepacific common stock per one common share of Estra owned by Estra shareholders, and allocating 0.1962185 shares of Amorepacific preferred stock per one preferred share of Estra owned by Estra shareholders.

However, instead of 0.1962185 shares of Amorepacific preferred stock, 19,634 KRW will be paid, and as of the merger date, a total of 4,319,480,000 KRW will be paid to Estra's preferred shareholders. The merger date is set for September 1.