HLB and HLB Life Science are merging. This decision aims to enhance management efficiency and increase corporate value.
On the 1st, HLB and HLB Life Science held board meetings and resolved that HLB will absorb HLB Life Science. HLB Life Science shareholders will receive new HLB shares. The merger price per share is KRW 58,349 for HLB and KRW 6,812 for HLB Life Science. For each common share of HLB Life Science, 0.1167458 common shares of HLB will be allocated.
Through the merger, HLB will secure the subsidiary shares of HLB Life Science, improving the structure so that the performance of affiliates is directly reflected in HLB's value. HLB Life Science, as a separate holding company from HLB, owns 100% of the shares of HLB Cell, a cell therapy development company that is unlisted, and HLB Energy, which operates an incinerator business in the southeastern region. It also holds stakes such as 14% in HLB Pharmaceutical, 3% in HLB Innovation, and owns 1.93 million shares of HLB stock.
By integrating new drug development and healthcare businesses, not only financial advantages but also management efficiency can be improved.
When HLB Life Science's specialized research and development (R&D) capabilities are integrated with HLB, the development of next-generation new drug candidates can accelerate. HLB Life Science’s subsidiary, HLB Life Science R&D, centered at the new drug research institute in Dongtan, is currently discovering anticancer substances with high synergy when combined with Lenvatinib. The combined experience and technology from early-stage new drug candidate discovery to new drug approval stages are expected to significantly enhance the speed and efficiency of new drug development.
HLB and HLB Life Science will integrate the licensing and revenue rights of Lenvatinib that each holds. This is expected to increase momentum in applying for domestic product approval. By integrating the revenue structure, overlapping costs can be minimized and profitability maximized. If global approval and sales of anticancer drugs such as liver cancer drugs are achieved, both HLB and HLB Life Science shareholders can enjoy benefits such as increased dividends and value appreciation.
The final merger will be confirmed through HLB’s board meeting on June 12 and HLB Life Science’s shareholders meeting. Only shareholders of the absorbed company, HLB Life Science, will be granted the right to request stock purchase, with the exercise period from June 12 to July 2. The merger date is scheduled for August 1.
Nam Sang-woo, Senior Vice Chairman of HLB Group and CEO of HLB Life Science, said, "By combining the capabilities of both companies through the merger, we plan to maximize human and technological synergies and simplify the complex governance structure to improve management efficiency." He added, "If the Lenvatinib liver cancer drug is approved in the U.S. this year, we expect the corporate value to improve significantly after the merger, and the domestic product approval application can proceed more efficiently and quickly."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
