Brand Refactoring Secures Voting Base of Trade Creditors Sufficient to Reject M&A

by Jang Hyowon

Published 09 Mar.2026 10:40(KST)

On March 9, Brand Refactoring, the largest shareholder of Dong Sung Pharm, announced that it has already secured a voting base among trade creditors sufficient to lead to the rejection of the pre-approval M&A, and that it is continuing to secure additional trade claims.

According to Brand Refactoring, trade creditors have delegated their voting rights to the largest shareholder, effectively meeting the conditions required for rejection. As a result, the upcoming stakeholders’ meeting on March 18 is seen more as a procedure to confirm the already established voting structure rather than a pivotal event to determine the outcome.

A representative from Brand Refactoring stated, "Recently, there has been a sense in the market that the pre-approval M&A is being taken as a foregone conclusion, but this perception does not reflect the actual voting structure. The core of the rehabilitation process is not public opinion but whether substantive voting rights have been secured, and the current situation is leaning toward rejection."

The background behind the largest shareholder’s move to secure additional trade claims, even after exceeding the threshold for rejection, is also clear. The explanation is that this measure is intended to completely block any confusion or variables that may arise right up until the stakeholders’ meeting, and to further enhance voting stability. The strategy is not simply to meet the legal requirements but to solidify the rejection scenario even more firmly.

The largest shareholder also stated, "Among shareholders, there is growing awareness that if the pre-approval M&A structure is realized, concerns over the loss of existing equity value are increasing due to factors such as capital reduction, issuance of new shares, and inflow of convertible funds," adding, "We are accelerating efforts to secure opposition consents, prioritizing the need to protect existing shareholders from losses."

The representative further emphasized, "Rejection is not a goal but an already secured outcome. Securing additional trade claims is not to overturn the outcome, but to fundamentally block any potential disruptions."