[Asia Economy Reporter Hyungsoo Park] CTB Bio's stock price is on the rise. The news that Jo Yongjun, CEO of Donggu BioPharmaceutical, secured shares for the purpose of management participation seems to have influenced the stock price.
At 9:37 a.m. on the 13th, CTB Bio was trading at 13,850 KRW, up 12.65% from the previous day.
Jo Yongjun, CEO of Donggu BioPharmaceutical, announced that he and four special related parties hold 5.15% (1,166,827 shares) of CTB Bio's shares.
He explained that the purpose of holding the shares is to influence matters such as the appointment and dismissal of directors and amendments to the articles of incorporation within the scope and methods permitted by relevant laws and regulations if issues related to CTB Bio's business execution arise in the future.
The largest shareholder of CTB Bio is Chairman Jo Hoyeon, who holds 5.84% of the shares. Including shares held by special related parties, the total is 9.92%. Chairman Jo Hoyeon has taken out loans using about 910,000 of his shares as collateral.
Previously, Korea Investment Partners, which held more than 10% of CTB Bio's shares, sold all its shares off-market last month, raising the possibility of a hostile takeover (M&A). Attention was drawn to the fact that the block deal buyer paid about a 40% premium when purchasing CTB Bio shares. In many cases, large block deals apply a discount rate compared to the reference price, but in this case, a premium was applied, raising suspicions that a management control premium was considered.
CTB Bio abolished the "golden parachute" provision in 2018. The current management must gather friendly shares to defend management rights. Jo Yongjun, CEO of Donggu BioPharmaceutical, stated that he purchased shares on the market. While the party that bought Korea Investment Partners' shares has shown no particular movement, attention is focused on the management rights direction as CEO Jo disclosed his shareholding.
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