China’s state-run Tsinghua Holdings has called off planned equity investment in South Korean biomedicine maker Binex Co. citing “soured” diplomatic relationship between South Korea and China.
Kosdaq-listed Binex said in a regulatory filing on Thursday that the plan to issue new shares worth 226.9 billion won ($202 million) to Tongfang Kontafarma Holdings Ltd, a subsidiary of Tsinghua Holdings fell through due to pullout from the Chinese investor. Shares of Binex finished Thursday 14 percent lower at 12,600 won on the news.
Tongfang Kontafarma was due to make the payment for the stock purchase by June 30.
The Korean biomedicine maker in November last year announced it was handing over majority equity and management right to Tongfang Kontafarma Holdings by issuing new shares worth 226.9 billion won to the Chinese investor.
The two, however, will push ahead with the plan to create a joint venture with Beijing Huakong Kanghua Healthcare Management Co., a wholly-owned subsidiary of Tongfang Kontafarma Holdings Ltd.
Binex will own 49 percent share in the joint venture and the rest by the Chinese partner. It added that it will disclose details of the venture when they are finalized.
By Kim Hye-soon
[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]