Bukwang Pharmaceutical Selected as Final Acquirer of Union Korea Pharm

"Stalking Horse" Method Used... Acquisition Amount Reaches 30 Billion Won

Bukwang Pharmaceutical announced on January 5 that it has been selected as the final acquirer of Union Korea Pharm.

Exterior view of Bukwang Pharmaceutical headquarters in Dongjak-gu, Seoul. Bukwang Pharmaceutical

Previously, on December 17 of last year, Bukwang Pharmaceutical signed a conditional investment agreement to acquire Union Korea Pharm. Following this, it was selected as the final acquirer through a public bidding process. The sale was managed by Wonjin Accounting Corporation.

The acquisition amount is 30 billion won. However, the final acquisition price may change depending on the rehabilitation process. If a decision is made regarding the payment of the remaining investment for the final acquisition, a separate disclosure will be made.

This merger and acquisition (M&A) was conducted using the "stalking horse" method. The stalking horse method involves pre-selecting a preferred negotiating party before conducting an open competitive bidding process. If there are no additional bidders or no bidders make a more favorable offer than the preferred party, the initial preferred party is confirmed as the final acquirer.

Through this agreement, Bukwang Pharmaceutical will expand its production capacity to include antibiotics and injectables in addition to its existing solid oral dosage forms. In particular, the company has broadened its portfolio to focus on chronic disease treatments centered on prescription drugs.

A Bukwang Pharmaceutical representative stated, "Union Korea Pharm has liquid injectable production facilities more than twice the size of Bukwang Pharmaceutical's. With this acquisition, Bukwang Pharmaceutical's pharmaceutical production capacity is expected to increase by about 30%." He added, "The current management of Bukwang Pharmaceutical has previously turned the company from a deficit into a surplus, and we will apply this expertise to work towards normalizing the management of Union Korea Pharm."

[Correction] The company acquired by Bukwang Pharm is 'Union Korea Pharm.' We are correcting a previous English report that mistakenly identified the company as 'Korea United Pharm.' Please note that Union Korea Pharm and Korea United Pharm are entirely separate legal entities.