Dongwon Group among companies bidding for Boryung Biopharma

[Courtesy of Boryung Biopharma]

Five to six companies, including Dongwon Group, are competing to acquire Boryung Biopharma Co., a subsidiary of Boryeong Group.

According to sources on Thursday, five to six potential bidders have so far submitted a letter of intent for a preliminary bidding for 100 percent in Boryung Biopharma from Boryung Partners, owner family members and investors. The sellers are hoping to raise more than 600 billion won ($475.2 million) from the sale, which is managed by Samil PricewaterhouseCoopers.

Samil PwC plans to come up with a shortlist next week at the earliest and the main bidding is due to take place in mid-late March.

Sources said Dongwon Industries Co., the parent of other Dongwon Group companies, participated in the preliminary bidding as a strategic investor. Dongwon Industries merged with Dongwon Enterprise Co. in November last year to become the holding company of Dongwon Group. Dongwon Industries is looking for acquisition targets in various fields to obtain new growth engines. It is also working to acquire McDonald’s Korea.

The sale price of McDonald’s Korea is known to stand at around 500 billion won.

The potential acquisition of Boryung Biopharma will provide Dongwon Group an opportunity to expand its business into the pharmaceutical and biotech industry.

Established in 1991, Boryung Biopharma developed Korea’s first oral typhoid vaccine and currently produces a variety of vaccine products. The company’s revenue and operating profit last year were 139.1 billion won and 19.8 billion won, respectively.