Celltrion's Three Companies Merger to Complete Administrative Procedures in July
"We Will Overcome the Crisis Through Hard Work"
Some Shareholders Protest Loudly
Seo Jung-jin, Honorary Chairman of Celltrion Group, is giving a greeting at the Celltrion shareholders' meeting held on the 28th at Songdo Convensia. Honorary Chairman Seo apologized to the shareholders for the recent stock price decline and said that if he is appointed as an inside director and co-chairman through the shareholders' meeting, he will work even harder. [Photo by Celltrion]
Seo Jung-jin, Honorary Chairman of Celltrion Group, who declared his return to frontline management, has been appointed as an inside director. Seo expressed his apologies to shareholders for the recent stock price slump. Regarding the merger of the three listed companies within Celltrion Group, he explained that the administrative procedures would be completed by the end of July.
On the morning of the 28th, Seo attended the Celltrion shareholders' meeting held at Songdo Convensia in Songdo, Incheon, and said, "I came to apologize to the shareholders before the start of the shareholders' meeting," bowing his head and adding, "The company should perform well so that employees feel rewarded and shareholders do not suffer losses, but I have nothing to say even if I had ten mouths." He continued, "It pains me deeply that things have not gone as expected and have caused difficulties," and stated, "After today's shareholders' meeting, I will run alongside everyone and work even harder."
Seo said, "As soon as January started this year, I first went to Europe to inspect operations in 27 countries. I also checked the Contract Manufacturing Organization (CMO) sites, and just three days ago, I reviewed direct sales in the U.S. and Canada," emphasizing, "Until now, I have visited as an honorary chairman to encourage employees, but after the shareholders' meeting, I will give strong directives to the management as the head of the group."
He then bowed his head again, saying, "I fully understand your feelings and apologize on behalf of the group." He also expressed his intention to listen to shareholders' opinions. He said, "If you have questions, I will not avoid them, ignore them, or give formal answers during the Q&A session after the shareholders' meeting. I will sincerely answer all questions," and added, "I will accept unlimited questions and provide answers."
He concluded by saying to the shareholders, "In times like these, when uncertainty is increasing (as it is now), I thought it would be better for me to come and join forces," and asked, "Please be generous and help ensure a normal shareholders' meeting. Thank you."
Seo Jung-jin, Honorary Chairman of Celltrion Group, is meeting with reporters immediately after the Celltrion shareholders' meeting held at Songdo Convensia on the 28th. [Photo by Lee Myung-hwan]
At the shareholders' meeting, Seo met with reporters and, when asked about his feelings on returning, said, "Crisis and opportunity coexist," adding, "To create synergy, decisions must be made quickly, so I came to make immediate decisions without going through multiple steps." He said, "The uncertain era seems likely to continue until next year," and stated, "All group heads must enter the sales field and deliver their best performance. We must overcome the crisis by working hard."
Regarding the reason for deciding to return, he explained, "Since the whole world is facing difficulties, I temporarily returned as the captain again," and added, "Now, all group heads must go to the sales field." He emphasized, "People with high credit (trustworthiness) need to be active. All group heads must enter the sales field, and those with influence must work hard."
He also revealed a blueprint for the merger of the three listed companies within Celltrion Group: Celltrion, Celltrion Pharm, and Celltrion Healthcare. Seo said, "The administrative procedures related to the Financial Supervisory Service's review will be completed in July," but added, "We need to watch carefully as we do not know when the financial market will stabilize." He emphasized, "Since shareholders want the merger, our stance on the merger remains unchanged." Regarding the acquisition of the biopharmaceutical division of the U.S. medical device company Baxter International, he said, "We have cash flexibility, but we will observe the first half of the year and take action at the end of the year."
On shareholders' opinions about management responsibility, he said, "The company belongs to the shareholders. We must not ignore the opinions of even a single shareholder," adding, "If shareholders are struggling and having difficulties, I must apologize a hundredfold and comfort them, and it is only natural to seek their understanding."
Regarding the disappearance incident of his second son, Seo Jun-seok, Director of Celltrion Healthcare, the previous day, he said, "He drank alcohol and took a sedative together and fell asleep, but his phone battery died," adding, "I found out from the news yesterday and told him not to drink next time."
At the shareholders' meeting that day, Seo was appointed as an inside director for a two-year term with 79.67% approval in the vote on the agenda for the appointment of inside directors. If the shareholders' meetings of the other two listed companies in Celltrion Group, excluding Celltrion, proceed as scheduled, Seo will serve as an inside director and co-chairman of the board of directors for a two-year term. Ki Woo-sung, Vice Chairman and CEO of Celltrion, was also reappointed for a three-year term.
Some shareholders wore headbands and held picket protests to express their dissatisfaction with Celltrion's recent stock price slump. Some shareholders shouted loudly throughout the shareholders' meeting to protest the stock price decline. Due to the shareholders' protests disrupting the meeting, order maintenance rights were enforced. One shareholder attending the meeting expressed dissatisfaction, saying, "Sales and operating profits have fallen compared to last year, but performance bonuses were higher than two years ago," and was reprimanded.
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