Bukwang Pharmaceutical Selected as Final Acquirer of Union Korea Pharm

"Stalking Horse" Method
Acquisition Amount Set at 30 Billion Won

Bukwang Pharmaceutical announced on January 5 that it has been selected as the final acquirer of Union Korea Pharm.

Exterior view of Bukwang Pharmaceutical headquarters in Dongjak-gu, Seoul. Bukwang Pharmaceutical

Previously, on December 17 of last year, Bukwang Pharmaceutical signed a conditional investment agreement to acquire Union Korea Pharm. Following this, the company was selected as the final acquirer through an open bidding process. The sale was managed by Wonjin Accounting Corporation.

The acquisition amount is 30 billion won. However, the final acquisition amount may change depending on the rehabilitation procedure. If a decision is made to pay the remaining investment for the final acquisition, a separate disclosure will be made.

This merger and acquisition (M&A) was conducted through a "stalking horse" method. In this approach, a preferred bidder is selected in advance, followed by an open competitive bidding process. If there are no additional bidders or no bids more favorable than the preferred bidder's terms, the existing preferred bidder is confirmed as the final acquirer.

Through this agreement, Bukwang Pharmaceutical will expand its production capacity to include not only solid oral formulations but also antibiotics and injectables. In particular, the company has broadened its portfolio into the field of chronic disease treatments, focusing on prescription drugs.

A representative from Bukwang Pharmaceutical stated, "Union Korea Pharm possesses liquid injectable production facilities more than twice the size of those of Bukwang Pharmaceutical, so this acquisition is expected to increase Bukwang Pharmaceutical's pharmaceutical production capacity by approximately 30%." He added, "The current management of Bukwang Pharmaceutical has previously turned the company from a deficit into a surplus, and we will apply this expertise to normalize the management of Union Korea Pharm."

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