This article appeared on February 28, 2025, at 5:23 p.m. on the ChosunBiz MoneyMove site.
Cansus Asset Management and domestic private equity fund (PEF) management company Wired Partners have failed to find a new owner for the infusion bag manufacturer Medipharm Plan, in which they invested hundreds of millions of won. Medipharm Plan, which began raising investments based on a change in management control, is considering liquidating the company as it deems it no longer feasible to maintain operations. Medipharm Plan plans to make a final decision after gathering opinions from creditors and other stakeholders.
According to investment banking (IB) industry sources on the 28th, stakeholders, including Medipharm Plan's management committee and creditor council, are discussing whether to proceed with the liquidation of the corporation. The investment attraction process, including a third-party allocation capital increase that was originally initiated with Samil Accounting Corporation as an advisory firm, has reportedly been halted.
Founded in 1981, Medipharm Plan specializes in manufacturing infusion containers. After acquiring the infusion business unit of CJ CheilJedang in 2009, it expanded its business areas and introduced an automation system at its Daeso factory in Eumseong, North Chungcheong Province, and pushed for expansion. It then garnered attention in the industry by reselling the infusion factory back to CJ in 2012 and received investments from Kiwoom Investment in 2014.
Medipharm Plan subsequently attracted investments from Cansus and Wired. Through the blind fund 'Cansus Neo' established in 2014, Cansus and Wired acquired convertible bonds (CB) and redeemable convertible preferred shares (RCPS) issued by Medipharm Plan. Wired further injected additional funds utilizing the fund established in 2021. Currently, Medipharm Plan's largest shareholder is Cansus Neo (54.85%), followed by Wired Corporations Financial Stability LLC (17.41%).
Medipharm Plan is reported to have also been preparing for an initial public offering (IPO), riding the momentum of attracting external investments. However, its performance soon turned downward. Medipharm Plan recorded revenues of 31.5 billion won and an operating profit of 1.5 billion won in 2016, but in the following year, it reported revenues of 21.7 billion won and an operating loss of 3.6 billion won. By 2019, a loss of benefits on debt (EOD) had occurred, making normal operations difficult.
Eventually, after entering corporate rehabilitation procedures in 2020, Medipharm Plan pursued management normalization through the cancellation of old shares and the conversion of some debts into equity. However, having failed once again to repay debts, it resumed its funding efforts, encountering difficulties, which led to considerations for corporate liquidation. As of the end of 2023, when Medipharm Plan disclosed its audit report, the deficit amounted to 52 billion won.
Medipharm Plan is the last portfolio in the Cansus Neo fund that has not completed its exit. Cansus has invested in Medipharm Plan as well as ▲Kumho Express ▲JS Corporation ▲Dongbu Farmcheongwa ▲Hyundai Movex and other five companies.
An industry source noted, 'There was not a single participant in the main bidding process that Medipharm Plan began at the end of last year,' adding, 'In a situation where deficits occur every time management activities take place, securing any remaining assets through corporate liquidation could be advantageous for creditors and collateral holders.'