A Shift to Holding Company System
Celltrion Group will promote the merger of its three units to adopt a holding company system. The three units are Celltrion Co., a biosimilar and new drug developer, Celltrion Healthcare, a drug distribution and sales company, and Celltrion Pharmaceutical, a chemical synthesis drug development and sales company.
The target time for the merger is the second half of 2021. If the merger is completed as planned, it will create a giant company with a market capitalization of about 52 trillion won based on the Sept. 25 closing stock prices, ranking third to Samsung Electronics (345.6 trillion won) and SK Hynix (60 trillion won). Currently, the market capitalization of Celltrion alone is about 35 trillion won, ranking eighth among KOSPI firms.
Celltrion Group launched on Sept. 25 Celltrion Healthcare Holdings as a preparatory step for the merger. Group chairman Seo Jung-jin invested more than two thirds of his 35.54 percent stake in Celltrion Healthcare in the new company, making it the largest shareholder of Celltrion Healthcare with a 24.33 percent stake.
"The move is aimed at separating ownership from management and strengthening the founder's control of the group,” a Celltrion Group official said. “We will establish a holding company system by pushing for the merger of Celltrion Holdings, which is the largest shareholder of Celltrion Co., and Celltrion Healthcare Holdings immediately after requirements for the merger are met."
Currently, Holdings owns a 20.03 percent stake in Celltrion Co. The largest shareholder of Celltrion Holdings is group chairman Seo with a 95.51 percent stake. In addition, Celltrion is the largest shareholder of Celltrion Pharmaceutical with a 54.97 percent stake.
If the holding company system is completed, chairman Seo's control will become stronger.