Kukdong, Previously Advancing Bio New Business, Acquired by Golf Wear Company

The Y Holdings Advances Bio Business After Acquiring Gukdong in 2020
Chris F&C Expects Synergy Using Gukdong Production Facilities
250 Billion Won Fundraising Alongside Major Shareholder Change

[Asia Economy Reporter Hyungsoo Park] The largest shareholder of Kukdong, which was pursuing a new bio business, has changed after about a year. Chris F&C, which operates golf apparel brands such as Paris Gates and Ping, is acquiring the existing largest shareholder's stake. Chris F&C is expected to actively utilize Kukdong's sportswear and knitwear production facilities to secure cost competitiveness.

According to the Financial Supervisory Service's electronic disclosure system on the 12th, Chris F&C signed a contract to acquire 12,046,775 shares (21.82%) of Kukdong from The Y Holdings for 34 billion KRW. A deposit of 19 billion KRW was paid on the contract date, the 11th, and the remaining 15 billion KRW will be paid on the 17th of next month. Following the deposit payment, 7 million shares of Kukdong were preferentially acquired.

Previously, in March 2020, The Y Holdings acquired convertible bonds (CB) worth 15 billion KRW issued by Kukdong. In August of the same year, it signed a contract to acquire 8.21% of Kukdong shares from Chairman Byun Sang-ki and three others for 18.2 billion KRW. The remaining payment was scheduled to be made before the regular shareholders' meeting in March of the following year. The Y Holdings completed the stock transfer contract and converted the convertible bonds it held into common stock. The number of shares held increased to 12,046,775. During this process, some of the convertible bonds held were sold, converting about 15 billion KRW into cash.

Since starting investment in Kukdong, The Y Holdings has focused intensively on nurturing the new bio business. In September 2020, Kukdong's Bio Business Division and three companies?Celtroy, Humap, and others?signed an agreement for joint research and clinical development of new bio drugs and began collaborative R&D. Oh Chang-gyu, CEO of The Y Holdings and largest shareholder, managed Kukdong while supporting Celtroy and Humap. Humap is developing a human antibody transgenic mouse platform based on genome engineering core technology. They are conducting joint R&D utilizing gene recombination technology and know-how. Celtroy is developing a tissue-specific drug delivery platform and is applying a cell-penetrating peptide core patent to joint research for new drug development. Just a month ago, on the 20th of last month, they established an integrated bio research institute in Seongsu-dong, Seongdong-gu, Seoul.

At the opening ceremony of the research institute, Kukdong explained that the three companies will cooperate to secure next-generation technology and develop bio platform-based pharmaceuticals. Kukdong introduced plans to conduct Phase 1 and 2 clinical trials for an acute myocardial infarction treatment and a rheumatoid arthritis treatment developed by Celtroy, and to export the technology to global pharmaceutical companies as early as 2024.

CEO Oh Chang-gyu said, "The launch of the integrated research institute marks a turning point to enhance the synergy of joint research and will be an opportunity to accelerate the development and clinical trials of bio platform-based pharmaceuticals leading to new drug launches."

With the change of the largest shareholder during the nurturing of the new bio business, Kukdong is expected to undergo another transformation. Along with the change in the largest shareholder, Kukdong has begun raising funds.

It will raise 15 billion KRW in operating funds through a third-party allotment paid-in capital increase. LX Company, Ramicus, KP Investment, and others will acquire the new shares. It will also issue convertible bonds worth 10 billion KRW to be used as working capital for the textile division. The Termini Consortium and Chorokbaem New Technology Association No. 3 will each invest 5 billion KRW.

This content was produced with the assistance of AI translation services.