Orion Group to acquire stake in LegoChem Biosciences for $418 million

Confectionery firm Orion Group will acquire a 25.7 percent stake in LegoChem Biosciences for 550 billion won ($418 million), becoming the largest shareholder of the Kosdaq-listed biotech company.

Orion's headquarters [ORION]

Confectionery firm Orion Group will acquire a 25.7 percent stake in LegoChem Biosciences for 550 billion won ($418 million), becoming the largest shareholder of the Kosdaq-listed biotech company.

The transaction, led by Orion's Hong Kong-based subsidiary, Pan Orion Corp., involves a combination of a rights offering and share purchases. According to the Financial Supervisory Service's electronic disclosure, Orion will acquire 7.96 million new shares at the rate of 59,000 won per share, alongside the purchase of 1.4 million existing shares at a base price of 56,186 won per share. This makes Orion the largest shareholder, holding 25.7 percent of the total stake. The payment for the investment is scheduled for March 29.

After the acquisition, LegoChem Biosciences will become an affiliate of Orion, keeping its current management and operations.

The deal not only marks Orion's deeper foray into the biotech field, which it entered in 2020, but also aims to bolster LegoChem Biosciences by providing the necessary financial impetus for clinical development and fostering new technology research, according to the two parties.

The agreement was formalized with the signing of a share transfer agreement by Orion Group's Vice Chairman, Hur Inn-chul, and LegoChem Biosciences' CEO, Kim Yong-zu, on Monday, agreeing to exert their best efforts toward becoming a global pharmaceutical firm through collaborative initiatives.

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]