Taekwang and UAMCO on Dong Sung Pharm Acquisition: "Claims of Pressure to Cut Off Transactions Are Groundless Speculation"

"Protecting Partnerships with Trade Creditors Is the Top Priority
Pursuing Completion of Rehabilitation Without a Capital Reduction Without Consideration"

The Taekwang Industrial and UAMCO consortium stated on February 12 that the recent controversy over alleged "pressure to cut off transactions targeting trade creditors" in relation to the acquisition of Dong Sung Pharm is "groundless speculation with no basis whatsoever."

Taekwang Industrial Corporate Identity.

The Taekwang and UAMCO consortium criticized certain claims made by some of the major shareholders, calling them "irresponsible remarks that distort the true intention of the acquiring party," and stressed that "the consortium regards the protection of all stakeholders and the restoration of trust as the highest priorities in its management."

The consortium particularly emphasized that "the most important assets in normalizing the management of a company under rehabilitation are the sales network built up over decades and the partnership with trade creditors," adding that "any disruption of transactions that could damage these assets cannot be considered, and we will thoroughly ensure that existing business partners can continue their business in a stable manner."

The consortium also elaborated on the controversial "procedure for obtaining consent to the rehabilitation plan." It explained that "this procedure is a process to restore trust with stakeholders that was damaged by past lax management and insolvency, and to build an official foundation for cooperation for future joint growth," and that "it is not pressure premised on the departure of business partners, but a win-win message that promises strong financial support and a stable trading environment."

A representative of the consortium said, "Our goal is for Dong Sung Pharm to once again establish itself as a trusted company in the market," adding, "After the acquisition, we are fleshing out a mid- to long-term growth roadmap, including sales expansion." The representative continued, "We will spare no company-wide support to ensure that all stakeholders, including trade creditors, can be protected."

In fact, the Taekwang and UAMCO consortium, in consultation with the court-appointed administrator, submitted to the court a plan to complete the rehabilitation procedure without implementing a capital reduction without consideration, which shareholders typically have to endure in a standard corporate rehabilitation process. This move is interpreted as an intention to protect shareholder rights by preserving the equity value of existing shareholders.

The Taekwang and UAMCO consortium has been smoothly carrying out various preparations for the acquisition since signing the investment agreement on January 8, and is expected to present more concrete plans for management normalization and growth strategies in the near future.

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