Kolmar Holdings, the holding company of Kolmar Korea, is set to acquire control of contract research organization Woojung Bio through a convertible bond deal, as part of a broader push to deepen the group’s foothold in biotechnology research.
According to a regulatory filing Thursday, Woojung Bio will issue 35 billion won ($24 million) in convertible bonds to Kolmar Holdings through a third-party allotment, with the bonds maturing on March 3, 2030. If fully converted at 2,325 won per share, the bonds would be exchanged for about 15.05 million shares, equivalent to 47.2 percent of Woojung Bio’s outstanding shares.
This would make Kolmar Holdings the company’s largest shareholder, giving it management control. Even before the conversion takes place, Woojung Bio said the current controlling shareholder will delegate voting rights to Kolmar Holdings.
Kolmar Holdings said it views Woojung Bio as a company with strong nonclinical contract research organization capabilities and established bio research infrastructure. “Through Woojung Bio, Kolmar Group aims to improve the efficiency of its research and development, while Woojung Bio can strengthen its business capabilities by leveraging the group’s network,” a company official said.
Woojung Bio said Kolmar Holdings was selected as a strategic investor for its deep understanding of the biotech business, shared vision for long-term growth and potential for future cooperation.
“The funds raised will be used to repay debt and improve the company’s financial structure, while also supporting new business initiatives aimed at bolstering operational stability and future growth,” Woojung Bio said in a statement.
Founded in 1989, Woojung Bio shifted to second-generation leadership last year after the death of its founder, Chun Byung-nyun.
minmin@heraldcorp.com
