Bukwang Pharmaceutical Acquires 60 Million Shares of Union Korea Pharm via Third-Party Allotment, Becoming Largest Shareholder with Massive Dilution Risk
Bukwang Pharmaceutical participated in Union Korea Pharm's third-party allotment capital increase under a rehabilitation plan, acquiring 60 million common shares at 500 KRW per share, paying a total of 30 billion KRW.
With this acquisition, Bukwang holds 75.14% of Union Korea Pharm, becoming the largest shareholder, and has entered into a 6-month lock-up agreement from the listing date of the new shares.
The acquisition funds came from Bukwang's 2025 rights offering and its own cash reserves, with no debt financing.
[AI Summary]Bukwang's 30 billion KRW investment rescued Union Korea Pharm from rehabilitation but severely diluted existing shareholders due to the deeply discounted issuance price far below market value. Short-term downside pressure is likely, while long-term recovery depends on successful business normalization.