À̹ÌÁö È®´ë Kolmar Korea Holdings Co. has agreed to sell Kolmar Korea¡¯s pharmaceutical business unit and Kolmar Pharma to local private equity fund (PEF) IMM PE at estimated 750 billion won ($625 million) to improve its financial health.
Kolmar Korea is a leading cosmetics original development manufacturer and another affiliate Kolmar Pharma is a global contract manufacturing organization (CMO) for pharmaceutical industry customers.
According to investment banking sources on Wednesday, Kolmar Korea recently signed a memorandum of understanding with IMM PE to sell Kolmar Korea¡¯s pharmaceutical business unit and Kolmar Pharma. A potential deal value could reach about 750 billion won ($625 million), the sources said. The deal is led by Samil PwC.
On Thursday, shares of Kolmar Korea closed 0.84 percent lower at 47,000 won.
The company is seeking to dispose of its assets as it has been grappling with snowballed debt after completing a bulky debt-leveraged deal to buy CJ Healthcare for 1.3 trillion won in 2018. After the acquisition, Kolmar Korea¡¯s long-term credit rating fell by one notch to A- due to a debt increase of some 900 billion won.
Kolmar Korea Holdings now controls 27.79 percent of Kolmar Korea, and 72.97 percent of Kolmar Pharma. Some suspect the latest transaction also aims to support the payment of gift tax levied on Kolmar Korea vice chairman Yoon Sang-hyun, the heir of the company. Former Kolmar Korea chairman Yoon Dong-han bestowed the eldest son with his 14 percent stake in Kolmar Korea Holdings last December, which creates an initial gift tax liability of 25 billion won for the vice chairman.
The possible selloff is also expected to mark the group¡¯s business structure shakeup, defining cosmetics as Kolmar Korea¡¯s main business, and pharmaceuticals for CJ Healthcare, which is on track to go public. CJ Healthcare posted an operating profit of 42.8 billion won over sales of 395.2 billion won in the first three quarters of last year, up 59.1 percent and 9.9 percent, respectively.
By Kang Woo-seok and Minu Kim
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