Huons Global (084110) has stepped forward to directly address shareholder concerns surrounding the merger of its subsidiaries Huons (243070) and Huons Lab. The company stressed the necessity of the merger, while pledging to actively reflect shareholder opinions in the voting process and to prepare shareholder return measures.
Huons Global held a shareholder briefing on Thursday at its office in Pangyo, Seongnam, Gyeonggi Province, to explain the background of the Huons-Huons Lab merger and its future plans.
Shareholders of Huons Global attended the briefing and raised questions about the appropriateness of the merger ratio, the bio business growth strategy, and the possibility of shareholder value being undermined. The company explained the merger structure and calculation criteria, and listened to shareholder opinions.
Huons Global explained that having Huons, which has cash-generating capabilities, absorb Huons Lab, which holds bio platform technology, is an inevitable choice to secure the group's future growth engine. The company said Huons could strengthen its status as an innovative pharmaceutical company by expanding its research and development (R&D) share, while Huons Lab, which is in a state of capital impairment, could secure stable R&D funding and accelerate technology transfer and commercialization.
The company particularly reaffirmed its position that it would decide whether to exercise Huons Global's voting rights on the merger proposal based on shareholder opinions. To this end, it plans to gather shareholder opinions before the extraordinary general meeting scheduled for the 3rd of next month, and decide the direction of its voting rights based on those opinions. In this process, the company is also considering measures to restrict the voting rights of the largest shareholder and related parties. The company said that if financial authorities announce guidelines for the so-called "3% rule" related to the dual listing of subsidiaries, it will respond accordingly.
Shareholder return measures are also under consideration. Huons Global plans to request the election of minority shareholder representatives and, through consultations with representative shareholders, prepare a separate shareholder return plan.
The company said it is also considering a plan to distribute, as in-kind dividends, a portion of the new merger shares that Huons Global will receive from the merger of Huons and Huons Lab to minority shareholders, excluding the major shareholder and treasury shares. The specific scale of the return will be finalized through review by a special committee and a board resolution, reflecting the financial situation and the results of shareholder opinion gathering.
Song Soo-young, CEO of Huons Global, stressed, "Through the shareholder briefing and the extraordinary general meeting, we will ensure that the wishes of all shareholders, including minority shareholders, are reflected in management without distortion. We will continue to prepare various measures to enhance shareholder value going forward."
