Huons Global's stock price soared in early trading following the announcement of the withdrawal of the merger with its subsidiaries, Huons and Huons Lab. This surge is attributed to the alleviation of concerns that the absorption of Huons Lab, which has significant future growth potential, could diminish Huons Global's share value.
As of 9:20 a.m. on the 27th, Huons Global shares were trading at 30,900 won, up 7,100 won (29.83%) from the previous trading day. In contrast, Huons shares fell by 6.65% at the same time.
Huons announced after the market closed the previous day that it had decided to withdraw the merger with Huons Lab. Huons Global is the largest shareholder of Huons, holding a 40.74% stake, and serves as the holding company for the Huons Group.
Market analysts had expressed concerns that if Huons Lab were absorbed by Huons, its growth potential would only be indirectly reflected through Huons.
Previously, on May 18, Huons' board of directors had decided to merge with its unlisted subsidiary, Huons Lab.
The purpose of the merger was to secure Huons Lab's biopharmaceutical pipeline and integrate research and development capabilities to create future growth engines. The merger ratio was set at 1 to 0.4256943 between Huons and Huons Lab.
Huons had postponed the merger schedule to communicate with shareholders and establish protective measures, but ultimately determined on the 26th that proceeding with the merger would pose a high risk of damaging existing shareholder value, leading to the decision to withdraw.
As a result of the merger withdrawal, Huons Global also canceled its planned in-kind dividend. If the merger had been completed, Huons Global intended to distribute approximately 260,000 new shares from the merger to general shareholders, excluding the largest shareholders and related parties.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.