[Alpha Biz= Kim Jisun] HLB and HLB Life Science have announced plans to merge, a move aimed at streamlining their governance structure, enhancing operational efficiency, and boosting corporate value. A key outcome of the merger will be the integration of the rights and revenue streams for the promising new drug candidate, Rivoceranib.
On April 1, both companies held a board meeting and decided that HLB would absorb HLB Life Science.
The merger will be conducted by issuing new shares of HLB to HLB Life Science shareholders. The per-share merger value is set at 58,349 KRW for HLB and 6,812 KRW for HLB Life Science. Each share of HLB Life Science will be converted into 0.1167458 shares of HLB.
Once the merger is completed, HLB’s largest shareholder, CEO Jin Yang-gon, will see his ownership stake decrease from 7.23% to 6.63%. However, the combined stake of the largest shareholder and related parties is expected to increase slightly from 9.56% to 10.37%.
Following the merger, HLB and HLB Life Science will combine their respective rights to Rivoceranib. HLB will hold the global rights, while HLB Life Science will maintain domestic rights and revenue rights for Japan and Europe.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
