Jul 30, 2025
Strategic move aims to streamline operations and strengthen probiotics business
Ildong Group is restructuring its business portfolio to enhance management efficiency and bolster competitiveness in its core sectors. As part of this initiative, Ildong Pharmaceutical will acquire shares of Ildong Bioscience from Ildong Holdings, accelerating the integration of its health functional food (HFF) value chain. Meanwhile, Ildong Holdings is divesting the shares to improve its financial structure and streamline management.
On the 30th, Ildong Pharmaceutical announced that it will purchase 1,798,347 shares (22.5% stake) of Ildong Bioscience held by Ildong Holdings for KRW 14.16 billion in cash.
With the transaction set to close on the 31st, Ildong Holdings will sell its entire stake in Ildong Bioscience, thereby improving profitability and financial stability. For Ildong Pharmaceutical, the acquisition secures strategic assets that will support in-house production of functional food ingredients. Ildong Bioscience is a key affiliate specializing in the manufacture of pharmaceutical and probiotics raw materials.
Alongside the transfer of shares, Ildong Pharmaceutical will also inherit contractual rights previously held by Ildong Holdings. These include:
A call option for the largest shareholder (exercisable between one and three years after the transaction, up to 20% of shares)
Drag-along rights for investors
Tag-along rights for shareholders
These rights were established under a stock purchase and shareholder agreement signed earlier this year (June–July) between Ildong Holdings and IBK-Kium Business Restructuring Private Equity Fund, among others. However, Ildong Holdings will continue to retain the put option (right to sell shares back).