Seoul: Celltrion Holdings, the holding company of South Korea's Celltrion Group, announced plans to purchase 500 billion won (US$366 million) worth of shares in its flagship affiliate, Celltrion Inc., as part of a strategy to enhance corporate value.
According to Yonhap News Agency, the holding firm intends to commence the share acquisition during trading hours in August and aims to finalize the purchase by the end of the year. The company outlined in a press release that this investment is designed to improve Celltrion Holdings' profitability, leveraging Celltrion Inc.'s growth potential and increasing dividends.
The share purchase is a component of a larger initiative to invest up to 1 trillion won to augment the holding firm's profitability and boost shareholder value at its primary affiliate. Celltrion Holdings also disclosed plans to allocate some of the funds towards acquiring a high-value company, whether domestic or international, to reorganize its business portfolio. This acquisition is part of the firm's transition from a pure holding company to an operating holding entity.
Celltrion Inc. shares have experienced an 8.1 percent decline this year through Thursday, affected by uncertainties surrounding U.S. tariff policies and drug pricing reforms.