Samsung Biologics has unveiled plans to raise over $2 billion through a rights issue, aimed at financing its proposed acquisition of PolyPeptide Group and bolstering its manufacturing capabilities.
The South Korean biosimilar manufacturer, a subsidiary of the Samsung Group, revealed on Friday that it will issue approximately 2.3 million new shares at a price of 1,322,000 Korean won each. This move is designed to secure roughly 3 trillion won, equivalent to $2.17 billion, with the new shares slated to begin trading in November.
The company stated that about 2.71 trillion won of the raised funds will be directed toward the acquisition of PolyPeptide, a Swiss contract development and manufacturing organization. This transaction, initially announced in July, is expected to be finalized by November.
According to the Korean firm, the PolyPeptide acquisition is anticipated to broaden Samsung Biologics' portfolio, extending its reach beyond antibodies and antibody-drug conjugates into the peptide therapeutics arena. This strategic expansion is intended to address the escalating global demand for a diverse array of medical treatments.
Furthermore, the company outlined its ambition to increase its worldwide manufacturing capacity from the current 845,000 liters to approximately 1.4 million liters by the year 2032.
John Rim, President and CEO of Samsung Biologics, emphasized that the acquisition of PolyPeptide and the expansion of production facilities would solidify the company's market leadership and generate lasting value for its shareholders.
On Friday, the announcement of the new share sale exerted downward pressure on the company's stock price, as investors expressed concerns over potential dilution of existing shareholders' stakes. The shares were last trading down 4.7% at 1,519,000 won.
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