HLB Life Science, Withdrawal of Merger with HLB Exceeds 40 Billion Won in Stock Purchase Request

[Financial News] HLB Life Science has decided to withdraw the merger with HLB.
The two companies had been pursuing the merger to integrate the rights of Rivoceranib and enhance management efficiency, but the stock purchase payment exceeded the merger contract standard due to the exercise of stock purchase requests, leading to the suspension of the procedure.
HLB Life Science announced on the 1st that it held a board meeting and finally decided to withdraw the merger with HLB. This decision was made because the stock purchase payment to be paid to shareholders exceeded the original contract limit of 40 billion won, making it difficult to proceed with the scheduled merger procedure normally.
Previously, HLB Life Science and HLB approved the merger plan through the board of directors of both companies last April and received approval through the temporary general meeting of shareholders of HLB Life Science in July. Through this merger, the two companies planned to integrate new drug development and healthcare businesses and unify the rights of Rivoceranib to enhance global business competitiveness.
However, with this withdrawal decision, the merger procedure is suspended, and the two companies will continue their respective businesses as separate corporations.
An HLB Life Science official stated, "This decision comprehensively considered shareholder rights and the company's management stability," adding, "Although the merger is suspended, strategic cooperation with HLB will be further strengthened."

vrdw88@fnnews.com Kang Jung-mo Reporter