Samsung Biologics (207940.KS) has cleared the minimum acceptance threshold in its tender offer for PolyPeptide Group, a global peptide contract development and manufacturing organization. The company plans to complete the acquisition by the end of next month after an additional offer period.
Samsung Biologics said on the 13th that preliminary interim results from the tender offer, which ran from Sept. 15 to Oct. 12, showed 87.88% of the targeted shares had been tendered. That exceeds the 66.7% minimum acceptance condition required to complete the transaction.
The tender offer was carried out through Samsung Peptide, a special purpose company set up as a subsidiary to acquire PolyPeptide Group. It covered all 33,016,411 outstanding shares excluding treasury stock, at 44.31 Swiss francs per share.
A total of 29,014,418 shares were tendered, including the entire 18,375,000-share stake held by Draupnir Holding, PolyPeptide Group's largest shareholder. That equals 87.88% of the targeted shares, above the 66.7% minimum, and 87.59% of all outstanding shares. Definitive interim results, verified by an independent auditor, will be released on Oct. 16.
Samsung Biologics will hold an additional offer period from Oct. 19 to Oct. 30. It then plans to pay for the shares and close the deal within 10 trading days of receiving regulatory approvals from authorities in Europe, India, Australia and Brazil. If the additional offer period lifts its stake above 90%, Samsung Biologics can move to squeeze out the remaining minority shareholders. The company also plans to delist PolyPeptide Group after completing the acquisition.
Samsung Biologics signed the acquisition agreement with PolyPeptide Group in July and aims to wrap up the purchase by the end of November. At 1.46 billion Swiss francs, or about 2.7 trillion won, the deal is the largest merger or acquisition in South Korea's pharmaceutical and biotechnology industry.
Samsung Biologics intends to use the acquisition to expand its CDMO business beyond antibody drugs into peptides. Peptides are a key ingredient in diabetes and obesity treatments in the global pharmaceutical and biotech market. Analysts at global investment banks project the worldwide market for obesity drugs will grow to as much as $150 billion, or roughly 200 trillion won, by around 2035, driven by surging demand and a widening range of approved uses.