HLB Innovation to Acquire 99.3% Stake in HLB Cell for 36.2 Billion Won

HLB Innovation will acquire a 99.30% stake in affiliate HLB Cell for 36.2 billion won, making it a subsidiary.

HLB Innovation disclosed that its board decided on the 26th to acquire 34,227,742 shares of HLB Cell for 36,247,170,000 won. The scheduled acquisition date is Sept. 4.

The transaction will give HLB Innovation a 99.30% stake in HLB Cell. The purpose of the acquisition is to enter a new business and expand synergies with existing businesses.

The counterparty is HLB Life Science, a related party of HLB, HLB Innovation’s largest shareholder. The acquisition price represents 13.49% of total assets and 14.24% of equity.

HLB Innovation plans to pay a 1 billion won down payment on the 26th and the remaining 35,247,170,000 won on Sept. 4. Of that amount, 35 billion won will be funded through short-term borrowing from Yuanta Securities.

The company commissioned Samdo Accounting Corporation to conduct an external valuation. The valuation firm estimated HLB Cell’s value at between 34.82 billion won and 38.454 billion won and said there was no basis to conclude that the planned transaction price of about 36.2 billion won was inappropriate.

HLB Cell is an unlisted affiliate engaged in bioartificial liver and cell therapy businesses. Last year, it recorded revenue of 11 million won and a net loss of 21.57 billion won.