Aribio Holdings Continues to Reel From Merger Withdrawal, Plunges for Second Straight Day [Stock NOW]

[Financial News] Aribio Holdings is plunging for a second straight day following the fallout from its withdrawal from an absorption merger with Aribio.
Investor sentiment is believed to have deteriorated sharply as hopes of enhancing corporate value and securing a listing through the merger have faded.
As of 9:24 a.m. on the 30th, Aribio Holdings was trading at 3,195 won on the KOSDAQ (Korea Securities Dealers Automated Quotations), down 720 won, or 18.39%, from the previous trading day. The decline followed a plunge of more than 25% the previous day after news broke that the merger had been withdrawn.
Aribio Holdings disclosed the previous day that, following a board resolution, it had signed an agreement to terminate the absorption merger agreement it had entered into with Aribio.
The company explained that the surviving company's reference share price had fallen below the appraisal price calculated under relevant laws. It added that the value reflected in the reference share price had also changed because of an exclusive sales rights agreement involving Aribio, the company being absorbed.
The company said it halted the merger to reduce the resulting financial burden and uncertainty, as a large number of appraisal rights were expected to be exercised if an extraordinary general meeting were held after the registration statement took effect.
The two companies had pursued the merger after signing the agreement in August 2024 and subsequently revising its terms several times. They submitted an amended registration statement to the Financial Supervisory Service but received a request for further revisions in July this year, and had been preparing for an extraordinary general meeting scheduled for Jan. 6 next year. All planned procedures related to the merger have now been canceled.
Market participants believe the disappearance of expectations for Aribio's backdoor listing through the merger, along with growing uncertainty over its future business direction and corporate value, is weighing on the stock price. However, the specific financial impact of the merger withdrawal and the company's future business plans still require further confirmation.

[email protected] Kang Jung-mo Reporter