Huons Group announced on Wednesday that it will consolidate its pharmaceutical business operations under Huons.
Huons, the group’s pharmaceutical subsidiary, disclosed its decision to absorb its wholly-owned subsidiary, Huons Life Science Co., Ltd., in a small-scale merger.
The companies plan to sign the merger agreement on Thursday and complete the merger by June, following necessary filings and procedures.
This merger will be executed as an absorption merger without issuing new shares, as Huons already holds 100% equity in its subsidiary. As a non-capital increase merger, it will not result in any changes to management control or major shareholder status upon completion.
The record date for shareholders is set for May 7, with the merger date scheduled for June 23. The registration process is expected to be finalized within June.
Huons’ decision to merge aims to boost management efficiency by integrating resources. The move will restructure the pharmaceutical business, previously split between Huons and Huons Life Science, under the Huons brand. This strategic decision is intended to enhance the group’s pharmaceutical business competitiveness and expertise while streamlining operations.
Through this merger, Huons plans to leverage the Osong plant of Huons Life Science to bolster its overall pharmaceutical operations, including contract manufacturing (CMO) services.
Huons Chief Executive Officer (CEO) Song Soo-young expressed optimism about the merger, stating that by combining the core strengths of both companies, it expects to significantly enhance the expertise. This move should create synergies that will not only drive up the corporate value through improved operational efficiency and performance but also increase shareholder value.