CHA Bio Group Sells Stake in CHA Vaccine Institute to ‘Choose and Focus’ [fn Market Watch]

[Financial News] CHA Bio Group has adopted a “selection and concentration” strategy, continuing to reshape its portfolio around core businesses.
On the 19th, CHA Biotech announced that it has decided to transfer 8,948,813 shares of CHA Vaccine Institute that it currently holds to Solux, Aribio Investment Purpose No. 13, and others. The total transaction value is approximately 23.8 billion won.
After the deal is completed, CHA Biotech’s stake in CHA Vaccine Institute will be reduced to 1,340,483 shares, or 4.99%. This level of ownership is designed to step back from management control and strategic influence, while still retaining a minimum stake from the perspective of potential future technology collaboration and investment value.
CHA Vaccine Institute is a KOSDAQ (Korean Securities Dealers Automated Quotations)-listed biotech company that researches and develops next-generation premium vaccines based on immune-enhancing platform technologies.
However, CHA Bio Group has concluded that the vaccine business offers limited direct synergy with its core growth pillar, the cell and gene therapies (Cell and Gene Therapy (CGT)) business.
CHA Bio Group is restructuring its business portfolio around three main areas: cell and gene therapies (CGT), Artificial Intelligence in Healthcare (AI in Healthcare), and life sciences. It has been gradually disposing of investment assets that have low relevance to these core businesses. Funds secured through this stake sale will be used to strengthen research and development in CGT, expand its Contract Development and Manufacturing Organization (CDMO) operations, and invest in AI-based digital healthcare to secure future growth engines.
Previously, CHA Bio Group sold its entire stake in the bio and healthcare-focused Venture Capital (VC) firm Solidus Investment to JW Holdings, as part of its portfolio streamlining efforts. The company explained that the latest transaction is a continuation of this “selection and concentration” strategy through the reallocation of investment assets.
A company representative stated, "CHA Bio Group plans to strengthen its global competitiveness by concentrating its capabilities on core bio and healthcare businesses going forward."


kakim@fnnews.com Kim Kyung-a Reporter