HLB Life Science held a board meeting on the 1st and announced that it has decided to withdraw from the merger with HLB that it had been pursuing.
The company explained, "The amount of stock buyback payment that must be paid to shareholders exceeds the original contract cap of 40 billion won, making it difficult to proceed with the planned merger process as normal."
With this withdrawal decision, the merger process has been halted. Previously, HLB Life Science and HLB approved the merger plan through their respective boards in April and received approval at an extraordinary general meeting of HLB Life Science in July. The merger was intended to integrate the two companies' new drug development and healthcare businesses, and to unify the rights to the developing anticancer drug "Riboceranib," thereby enhancing global business competitiveness.
As a result, the two companies will continue their businesses as separate entities.
An official from HLB Life Science noted, "This decision comprehensively considers shareholder rights and the company's management stability," and said, "The merger is on hold, but we will strengthen our strategic cooperation with HLB."