Boryung to Split Off Prescription Drug Sales Division, Keep New Company Private

Boryung has decided to split off its prescription drug (ETC) sales division and establish a new company.

Boryung disclosed that its board of directors met on the 15th and approved a simple, physical split-off of its prescription drug sales division to establish Boryung Pharma Solution.

The split-off will proceed as a simple, physical split-off under the Commercial Act. Boryung will remain a listed company, while the newly established Boryung Pharma Solution will be unlisted. The split-off date is Jan. 4, 2027.

After the split-off, Boryung, the surviving company, will handle pharmaceutical manufacturing, while the new company will handle pharmaceutical sales and distribution. As of June 30, Boryung's total assets were 1.5032 trillion won, and the new company's total assets were 56.9 billion won.

Boryung said the purpose of the split-off was “to pursue greater specialization and advancement in each business division and respond quickly to changes in the domestic pharmaceutical market.”

The shareholders meeting is scheduled for Oct. 28, and the record date for determining shareholders is Sept. 30. Shareholders opposing the split-off may notify the company of their opposition from Oct. 13 through 27 and exercise their appraisal rights within 20 days of the shareholders meeting resolution.

The proposed purchase price was set at 8,924 won per common share. This is the arithmetic average of the volume-weighted average share prices over the two-month, one-month and one-week periods before the day preceding the board resolution.

Boryung said it has no plans to list the new company on a securities market within five years. It added that it may withdraw the split-off through a board resolution if the total amount of shares subject to appraisal rights exceeds 50 billion won.