Bukwang Pharmaceuticals Becomes Largest Shareholder of Union Korea Pharm

Completion of 30 Billion Won Capital Increase Payment

Bukwang Pharmaceuticals announced on the 27th that it has become the largest shareholder of Union Korea Pharm.

Bukwang Pharmaceuticals paid 30 billion won through a third-party allocation capital increase. As a result, Bukwang Pharmaceuticals has become the largest shareholder of Union Korea Pharm. The effective date is the 28th. The number of shares owned is 60 million, accounting for a 75.14% stake.

View of Bukwang Pharmaceutical Headquarters in Dongjak-gu, Seoul. Bukwang Pharmaceutical

Bukwang Pharmaceuticals explained, "In accordance with the conditional investment contract, the acquisition funds were deposited in advance," adding, "Due to the court’s approval of the previously determined rehabilitation plan, the funds will be contributed through the capital increase by the payment deadline."

Previously, on the 12th, the Seoul Bankruptcy Court held a meeting of interested parties—including rehabilitation creditors and shareholders—at the First Bankruptcy Court. The purpose of this meeting was to review and resolve the rehabilitation plan and examine supplementary reports on rehabilitation claims. On the same day, the court approved Union Korea Pharm's rehabilitation plan, resulting in Bukwang Pharmaceuticals being selected as the final acquirer of Union Korea Pharm.

Most of the secured rehabilitation claims will be settled in cash. The rehabilitation claims were divided into conversion to equity (67.6%) and cash payment (32.3%). Interest accrued after the commencement of proceedings will mostly be waived, and the rights to existing convertible bonds (CB) and bonds with warrants (BW) will expire as of the approval date.

A representative from Bukwang Pharmaceuticals stated, "Although we have become the largest shareholder, there are still procedures remaining, so we will do our best until the rehabilitation process is completed," adding, "As the largest shareholder, we will fulfill our role to help Union Korea Pharm return to profitability."

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