[Alpha Biz=(Chicago) Reporter Kim Jisun] Celltrion Group has begun the process of merging the three listed companies, which was its long-cherished project.

Celltrion and Celltrion Healthcare announced on the 17th that they will begin a full-fledged merger process through a board resolution. Celltrion plans to merge Celltrion Healthcare by the end of the year and then push for a second merger with Celltrion Pharmaceutical sequentially.

As a result, Celltrion Holdings, in which Chairman Seo Jung-jin holds a 98.13% stake, will first have a 21.5% stake in the merged corporation between the two companies, and a 54.8% stake in Celltrion Pharmaceutical as a grandson company under the merged corporation. Ultimately, the governance structure will be simplified in the order of holding companies and core business companies under Chairman Seo Jung-jin, the largest shareholder.

The merger is a key task for the company, which Chairman Seo has vowed for three years. Celltrion Group's three listed companies have a unique division structure, and Celltrion Pharmaceutical is in charge of domestic sales of biosimilar medicines developed by Celltrion, while Celltrion Healthcare is in charge of overseas sales.

"We decided on the merger to become competitive in the global market by gathering synergy from each platform," Chairman Seo said in an online meeting. "We can enhance investors' confidence by addressing suspicions of transparency."

Celltrion Group expects three effects through this merger. First of all, the business cycle from development to sales is unified to improve cost competitiveness, and based on this, large-scale investment resources can be secured.

In addition, aggressive price strategies can be used to expand market share. In addition, the merger of the two companies will cut off the transaction structure, making financial standards such as profits clear.

 

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