Samsung Biologics Secures 87.8% Stake in Polypeptide

(Provided by Samsung Biologics)  Samsung Biologics has passed a decisive hurdle to acquire Polypeptide Group, a global peptide contract development and manufacturing organization (CDMO). As the preliminary results of the tender offer showed that the tendered stake significantly exceeded the minimum acceptance condition, the company has effectively entered the final stage of the acquisition. Samsung Biologics stated on Oct. 13 that a total of 29,014,418 shares, including those held by the largest shareholder, were tendered in the tender offer for the stake in Polypeptide Group conducted from Sep. 15 to Oct. 12. This amounts to 87.88% of the target shares for purchase, which exceeds the transaction establishment requirement of 66.7% by more than 20 percentage points. Based on the total issued shares, this means the company has secured an 87.59% stake. This tender offer was conducted through Samsung Peptides, a special purpose company (SPC) subsidiary established for the acquisition. The purchase price per share was set at 44.31 Swiss francs, and the previous largest shareholder, Draupnir Holding, drove the success of the offer by tendering its entire holding of 18.375 million shares. The confirmed interim results, verified by an independent auditor, are scheduled to be announced on Oct. 16. Samsung Biologics will operate an additional tender period from Oct. 19 to 30. Thereafter, the company will make the payment and finally close the transaction after obtaining regulatory approvals from major relevant authorities in Europe, India, Australia, and Brazil. The company plans to complete all acquisition procedures by the end of November this year, and the total acquisition amount reaches 1.46 billion Swiss francs (approx. KRW 2.7 trillion, or approx. $2.07 billion), which is the largest ever in the domestic pharmaceutical and biotechnology industry. Peptides are considered a core raw material for diabetes and obesity treatments, for which demand is rapidly surging worldwide recently. The global obesity treatment market is expected to grow to a maximum of $150 billion (approx. KRW 200 trillion) around 2035, making it essential to secure preemptive production capacity. Samsung Biologics plans to maximize synergy by combining its accumulated know-how in the design and operation of large-scale production facilities with the technological prowess of Polypeptide Group.