Celltrion-Celltr Healthcare to Acquire Additional Treasury Shares Worth 300 Billion KRW

Completion of 530 Billion KRW Treasury Stock Acquisition in Two Days
"Will Continue Efforts to Enhance Shareholder Value"

Celltrion Group announced on the 9th that Celltrion and Celltrion Healthcare have decided to repurchase treasury shares worth 300 billion KRW through the integration of the two companies.

Celltrion CI. [Image provided by Celltrion]

This decision comes just two days after completing a treasury share repurchase worth 529.5 billion KRW. With this, the total treasury share repurchase amount reported by both companies this year reaches approximately 1.25 trillion KRW.

Celltrion plans to acquire an additional 1,314,286 shares (estimated acquisition amount about 207 billion KRW) from November 10 to February 8, 2024, and Celltrion Healthcare plans to acquire 1,320,000 shares (estimated acquisition amount about 93 billion KRW) from November 10 to December 17, 2023.

Including this acquisition, since February this year, Celltrion has reported a cumulative total of 5,742,688 shares (about 876.4 billion KRW), and Celltrion Healthcare has reported a cumulative total of 5,665,000 shares (about 375.7 billion KRW) in treasury share acquisitions. Combining the acquisitions of both companies amounts to 1.25 trillion KRW, making Celltrion the only listed affiliate group to exceed 1 trillion KRW in treasury share acquisition reporting this year.

According to Celltrion Group, this reflects the determination to enhance shareholder value and the successful merger of Celltrion and Celltrion Healthcare. Last month, the group also decided to cancel 2,309,813 treasury shares held by Celltrion, corresponding to the number of new shares allocated for the merger of Celltrion Healthcare’s treasury shares (approximately 359.9 billion KRW based on the stock price at that time), immediately after the merger, which is interpreted as a group-level commitment to enhancing shareholder value post-merger.

Meanwhile, Celltrion Group plans to launch the merged corporation on the 28th of next month according to the merger agenda and proceed with the new share listing process on January 12 next year. The two companies expect that simplifying the transaction structure through the merger will improve transparency, increase cost competitiveness, and expand market dominance.

A Celltrion Group official stated, "We are actively conducting treasury share repurchases as a way to express the group’s commitment to enhancing shareholder value and ensuring a successful merger," adding, "We will continue to maximize performance and strive to enhance shareholder value through active research and development investment and expanding market share globally."

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