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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] Bukwang Pharmaceutical has become the largest shareholder of Korea Union Pharmaceutical, raising expectations for a potential turnaround of the loss-making company.
According to industry sources on May 27, Bukwang Pharmaceutical acquired a 75.14% stake (60 million shares) in Korea Union Pharmaceutical through a third-party allotment capital increase. The transaction will take effect on May 28.
The acquisition follows the final court approval of Korea Union Pharmaceutical’s rehabilitation plan at the Seoul Bankruptcy Court on May 12. Under the plan, the KRW 30 billion injected by Bukwang Pharmaceutical will be primarily used to repay secured rehabilitation claims.
Unsecured claims will be settled through a combination of debt-to-equity conversion (67.6%) and cash repayment (32.3%). In addition, outstanding convertible bonds (CBs) and bonds with warrants (BWs) were fully extinguished upon court approval, eliminating potential dilution risks.
Most accrued interest since the start of court-led restructuring has also been waived, significantly easing the company’s financial burden.
With improved financial stability and a new controlling shareholder, market attention is now focused on whether Korea Union Pharmaceutical can successfully return to profitability.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
