Samsung Biologics Holds Meeting with Minority Shareholders on Paid-in Capital Increase..."Investment for Long-term Growth"

[Financial News] Samsung Biologics announced that it currently has no plans for an additional paid-in capital increase following its 3 trillion won paid-in capital increase. The company plans to minimize shareholder value dilution by prioritizing cash generation from operating activities and strategic debt financing for future large-scale investments.
On the 3rd, Samsung Biologics held an online meeting for minority shareholders to explain the background of the paid-in capital increase, the use of the funds, and future growth strategies. During the meeting, which lasted about an hour, Yoo Seungho, Head of the Management Support Center (Vice President), served as the presenter, followed by a Q&A session.
Regarding the possibility of an additional paid-in capital increase, Center Director Yoo stated, "As of now, there are no plans for an additional paid-in capital increase," adding, "If additional funds are required in the future, we plan to respond by comprehensively reviewing market conditions, domestic and international circumstances, and available financing methods."
Samsung Biologics plans long-term investment projects worth over 15 trillion won by 2034. The company intends to prioritize cash generation from operating activities and strategic debt financing for future investments.
The company also explained the rationale behind its choice of this paid-in capital increase method. It stated that after reviewing financing options to stably pursue large-scale investments, it determined that a general public offering of unsubscribed shares following a shareholder allocation was the most suitable method. The company explained that it considered the interest burden and potential decrease in future borrowing capacity associated with borrowing or corporate bonds, as well as the possibility of value dilution for existing shareholders associated with mezzanine financing or third-party allocations.
"Center Director Yoo stated, 'This paid-in capital increase is not merely about securing funds, but a decision aimed at ensuring the smooth execution of planned growth investments and securing the capacity to respond to industrial changes.' He added, 'We will responsibly execute the raised funds to drive earnings growth and enhance corporate value.'"
Previously, on the 28th of last month, Samsung Biologics announced a paid-in capital increase totaling 3.009 trillion won through a shareholder allocation followed by a public offering of unsubscribed shares. Of the funds raised, 2.7062 trillion won is planned to be used for the acquisition of Polypeptide Group, a global peptide contract development and manufacturing organization (CDMO), and 294.8 billion won for the construction of Plant 6.
The planned issue price is 1,322,000 won per share with a 15% discount applied, and the capital increase ratio is 4.9% of the existing number of issued shares. The final issue price will be determined through the paid-in capital increase process in the future.
Samsung Biologics plans to secure peptide CDMO capabilities through the acquisition of Polypeptide Group and expand its global production bases in the U.S., Europe, and Asia.
In terms of facility investment, the construction of Plant 6 is being pursued. Currently, the total production capacity is 845,000 liters, and it is planned to expand to a total of 1,385,000 liters through the expansion of Plants 5 through 8 within the 2nd Bio Campus.
 
[email protected] Jeong Sang-hee Reporter