'Celltrion 3 Companies' Integration Signal: Merger of Celltrion Holdings and Healthcare Holdings (Comprehensive)

Incheon Songdo Celltrion Plant 2 Overview. / Incheon - Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Chunhee Lee] Celltrion Holdings is merging Celltrion Healthcare Holdings and Celltrion Skincure. This is the first step toward the previously announced merger of the three listed companies in the Celltrion Group (Celltrion, Celltrion Healthcare, and Celltrion Pharm).

On the 26th, Celltrion Holdings announced that it will merge Celltrion Healthcare Holdings and Celltrion Skincure. Celltrion Holdings explained the purpose of this merger as "to unify the governance structure of the Celltrion Group and to create synergy and cost-saving effects across overall management operations to enhance corporate value."

Additionally, through this merger, Celltrion Holdings expects to operate more stably as it will generate revenue not only as a holding company after the merger but also through its cosmetics and health functional food businesses. It also anticipates improved financial soundness by merging two companies with low debt ratios.

The merger ratio between the merging corporation and the merged corporations is set at 1 for Celltrion Holdings common stock, 0.5159638 for Celltrion Healthcare Holdings, and 0.0254854 for Celltrion Skincure. All three companies are unlisted entities, and the merger ratio was calculated with reference to the market price calculation method stipulated in the Corporate Tax Act.

This merger among holding companies in the Celltrion Group is analyzed as the starting signal for the merger of the so-called "Celltrion 3 brothers," the three listed companies (Celltrion, Celltrion Healthcare, and Celltrion Pharm).

In September last year, the Celltrion Group established Celltrion Healthcare Holdings. Since then, they have disclosed plans to merge it with Celltrion Holdings and then proceed with the merger of the three listed companies.

A Celltrion official stated, "As previously announced, we are undergoing the process of merging the holding companies ahead of the merger of the three listed companies," adding, "Based on this merger between holding companies, the merger of the three listed companies will also proceed."

The shareholders' meeting for this merger will be held on September 16. If the agenda passes at the shareholders' meeting, the merger is scheduled to take place on November 1.