Samsung Biologics secures 87.88% in Polypeptide tender offer, paving the way for acquisition

[Financial News] Samsung Biologics has secured more than its targeted stake in a tender offer to acquire Swiss peptide contract development and manufacturing organization (CDMO) company Polypeptide Group. With the offer exceeding the minimum threshold for the deal to proceed, the acquisition process is expected to gather pace.
Samsung Biologics said on the 13th that, according to preliminary interim results of its tender offer for shares in Polypeptide Group, which ran from September 15 to October 12, 87.88% of the shares had been tendered. This is above the 66.7% minimum required for the deal to be accepted.
The tender offer was made through Samsung Peptide, a subsidiary established as a special purpose company (SPC) for the acquisition. The offer covers 33,016,411 issued shares, excluding treasury shares, at CHF 44.31 per share.
A total of 29,014,418 shares were tendered, including all 18,375,000 shares held by existing largest shareholder Draupnir Holding. This represents 87.88% of the shares covered by the offer and 87.59% of all issued shares. The final interim results, subject to verification by an independent auditor, are scheduled to be announced on the 16th.
Samsung Biologics plans to hold an additional tender period from the 19th through the 30th, then seek regulatory approval from the relevant authorities in Europe, India, Australia, Brazil and other jurisdictions. It aims to pay the consideration and complete the transaction within 10 trading days after approval. The target date for completing the acquisition is late November this year.
Samsung Biologics signed an acquisition agreement with Polypeptide Group in July. The purchase price is CHF 1.46 billion (approximately 2.7 trillion won), making it the largest merger and acquisition (M&A) deal in South Korea’s pharmaceutical and biotech industries.
The acquisition is part of a strategy to expand the company’s business beyond its focus on antibody drugs and into peptides. Samsung Biologics has expanded its CDMO portfolio beyond antibody drugs to include messenger RNA (mRNA) and antibody-drug conjugates (ADCs). It plans to add peptide development and manufacturing capabilities to further diversify its business.
Peptides are substances made up of short chains of amino acids and are used as key ingredients in diabetes and obesity drugs. As the obesity drug market grows, demand for the development and production of related peptides is also expected to increase. Samsung Biologics plans to combine its experience operating large-scale manufacturing facilities with Polypeptide Group’s development and production technologies to generate business synergies, and will also consider expanding production facilities in line with market growth.
[email protected] Jeong Sang-hui Reporter