Orion to acquire 25 percent stake in LegoChem Biosciences

Orion’s headquarters [Courtesy of Orion]

South Korea’s Orion Corp. will invest 550 billion won ($415.9 million) to become the largest shareholder with a 25 percent stake in LegoChem Biosciences Inc., the developer of an antibody-drug conjugate (ADC) platform used for the next-generation anticancer drugs.

According to regulatory filings on Monday, Orion’s Hong Kong-based subsidiary Pan Orion Corp. will be the acquiring entity for the stake via a third-party allotment paid-in capital increase and the purchase of existing shares. Pan Orion Corp. is the holding company for seven subsidiaries located in China.

Orion will participate in the third-party allocation of new shares, receiving 7,963,283 shares at 59,000 won per share. The existing 1,400,000 shares will be bought from the LegoChem Biosciences founder and Chief Executive Officer Kim Yong-zu and Chief Financial Officer Park Se-jin at the base price of 56,186 won per share. With these transactions, Orion will secure a total of 9,363,283 shares, making it the largest shareholder with an ownership exceeding 25 percent of the total shares, with a scheduled payment date of March 29th, 2024. Once the acquisition process is completed, Orion will integrate LegoChem Biosciences as its subsidiary, but will leave the existing management and operational system unchanged.

Orion Vice Chairman Hur Inn-chul and LegoChem Biosciences CEO Kim Yong-zu signed the share transfer agreement on Monday, agreeing to collaborate closely towards becoming a global pharmaceutical company.