Domestic private equity fund (PEF) operator VIG Partners will acquire the aesthetic division of LG CHEM for 200 billion won.
LG CHEM announced on the 7th that it will transfer its aesthetic business within the Life Sciences Division to VIG Partners.
The Life Sciences Division of LG CHEM consists of the primary care division, specialty care division, and aesthetic division. The aesthetic division sells fillers called "Evolife" and a lipolytic injection called "Bellacholine."
LG CHEM explained, "This sales transfer contract does not constitute a transaction under Article 374 of the Commercial Act and thus did not require a special resolution from the shareholders' meeting, allowing it to be decided by board approval."
Article 374 of the Commercial Act stipulates that when a company transfers all or a significant portion of its business, or when it acquires all or part of another company's business that substantially affects its operations, it must obtain a special resolution from the shareholders' meeting (with at least two-thirds approval).
The transfer price for this aesthetic business is 200 billion won, which accounts for only 0.42% of LG CHEM's total consolidated equity (47.9955 trillion won).
Through this acquisition of the aesthetic business, VIG Partners can promote a bolt-on with VIOL, an existing portfolio company. VIOL is a high-frequency skin care medical device company. VIG Partners conducted a public purchase in June and July and has now increased its equity to 95%, making voluntary delisting possible.