Shareholders OK Ildong’s revamp plan

[THE INVESTOR] Shareholders of Ildong Pharmaceutical agreed on June 24 to transform the firm into a holding company with four entities under its wing.

In its second attempt to become a holding firm, the Korean drug maker successfully gained approval to spin-off its four units as new entities, aiming to boost transparency of it corporate governance structure and stabilize management rights.

“Through the spin-off, we will efficiently allocate resources business sectors and promote business activities in accordance with each firms’ purpose,” Ildong Pharmaceutical chairman and CEO Lee Jung-chi said.

The firm is expected to be separated into two entities -- Ildong Pharmaceutical and Ildong Holdings -- each responsible for business operations and investment.

The new spin-off entity, Ildong Pharmaceutical, will be separated again into three new entities -- tentatively called Ildong Pharmaceutical in charge of medicines, Ildong Bio Science responsible for bio and health supplement business and Ildong Hyal Tech for Hyaluronic acid and facial filler.

By Park Han-na (hnpark@heraldcorp.com)