Celltrion and Healthcare merged on the 28th
Stock price strong due to foreign and institutional purchases
‘Eldest Brother’ Celltrion intraday report high
On the 15th, the proportion of KOSPI 200 increased
Enlarge photo Celltrion Group’s stock price is soaring ahead of the merger due to expectations for management transparency and passive capital inflow. On the 12th, Celltrion rose for three consecutive days and closed at 183,400 won, up 3.21% from the previous day’s closing price. Likewise, Celltrion Healthcare also rose for three consecutive days and closed at 80,200 won, up 1.78% on the day. Celltrion rose to 184,900 won during the day, breaking the 52-week high.
Celltrion Group’s stock price began to rise on the 8th. Celltrion’s stock price rose 6.41% on the 8th and 5.96% on the 11th, and Celltrion Healthcare also rose 5.72% on the 8th and 6.63% on the 11th. While foreigners and institutions continued to buy, individual investors showed a selling trend to take profits.
The biggest reason for the rising stock price of Celltrion Group is the anticipation of the merger of Celltrion and Celltrion Healthcare.
Celltrion Healthcare will be absorbed and merged with Celltrion on the 28th. The stock currently listed on the KOSDAQ market will be suspended from trading on the 18th, and will go through the process of merging with Celltrion and the new merged stock will be listed on January 12th next year.
In other words, existing Celltrion Healthcare shareholders will automatically receive Celltrion shares next year. During the merger process, the position of the National Pension Service, which owns about 7% of Celltrion’s shares, emerged as a variable, but it did not lead to the actual exercise of stock purchase rights, so the merger proceeded without major difficulties. If the two companies merge, management transparency is expected to be achieved due to a decrease in internal transactions. According to the Fair Trade Commission, Celltrion’s internal transaction ratio was 62.5%, the highest among domestic conglomerates.
Lee Hee-young, a researcher at Daishin Securities, analyzed, “The merger between the two companies will improve transparency through simplification of the transaction structure and secure cost competitiveness by improving the cost ratio. There is also a possibility that large-scale investments will be made with the integrated resources of the merger.”
The effect of capital inflow following the merger is also considered a factor in rising stock prices.
The Korea Exchange has decided to reflect the number of shares resulting from the merger of Celltrion and Celltrion Healthcare in indices such as KOSPI 200 starting from the 15th. The merger ratio between the two companies is 0.449262 Celltrion shares per Celltrion Healthcare share, and the total number of Celltrion shares listed on the stock market is expected to increase by 1.449262 times.
Therefore, unless there is a major change in the stock price, the market capitalization will increase by about 45% and Celltrion’s weight in the KOSPI 200 will also increase. As of the closing price on the 11th, Celltrion’s market capitalization is 26.8694 trillion won, accounting for 1.48% of the KOSPI 200. Assuming the stock price is the same, the market capitalization after the merger will rise to 37.4915 trillion won and the proportion will rise to 2.18%.
If the weight in the KOSPI 200 increases, there is room for additional stock price increases due to the inflow of passive funds that track the index. For example, Mirae Asset Global Investments’ TIGER 200 ETF currently has Celltrion’s composition weight at 1.83%, and will additionally purchase Celltrion to reflect the new index composition.
[김대은 기자]
2023-12-13 09:38:41
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