Hanmi Science, the South Korean holding company of drug developer Hanmi Pharmaceutical, experienced a surge in its shares following the board's approval for the founding family to sell a controlling stake. This move has alleviated concerns about a potential block sale that could have negatively impacted the company's stock value.
On Monday, Hanmi Science saw a 13% surge, closing at 43,300 won ($32.97), outperforming the benchmark Kospi which ended nearly flat with a 0.04% increase or 0.94 points.
The rally came as a result of chemical company OCI Holdings' announcement through a regulatory filing on Friday. OCI Holdings disclosed that it would acquire a 27% controlling stake in the pharmaceutical holding company for KRW770.29 billion.
Hanmi Science later confirmed the deal through separate regulatory filings. In addition to the acquisition, the agreement also involved new rights issues and various other forms of investments. As part of the arrangement, OCI Holdings will receive 6.4 million new Hanmi Science shares, which will be subject to a one-year lock-up period.
Hanmi Science stated that the proceeds generated from the deal would be partially used by the founding family, who will be replaced as the largest shareholders by OCI Holdings after the transaction. The funds will be used to pay inheritance taxes. Furthermore, the family plans to acquire a combined 10% stake in OCI Holdings, making them significant shareholders in that company as well.
According to analysts Park Jae-kyung and Lee Jun-ho from Seoul-based Hana Securities, this development has alleviated concerns regarding potential overhang risks associated with Hanmi Science owners' shares. They mentioned in a research note on Monday that it is a positive outcome and that the deal could provide Hanmi Science with opportunities to make active investments in developing new drugs and expanding their businesses. This is due to OCI Holdings' financing capability and global network.
