In this briefing:
- The Celltrion Group Chairman Seo Jung-Jin made an important announcement at a JP Morgan Conference in San Francisco on January 15th. Chairman Seo mentioned that he would be willing to merge Celltrion Inc (068270 KS), Celltrion Healthcare (091990 KS), and Celltrion Pharm (068760 KS) if this is what the shareholders really want. In terms of timing, this merger could occur as soon as 2021.
- Following this major strategy announcement by the Chairman Seo, all the Celltrion related stocks are up today: Celltrion Inc (068270 KS) (market cap of 22.8 trillion won)– Up 1.1%; Celltrion Healthcare (091990 KS) (market cap of 7.8 trillion won)– Up 3.1%; and Celltrion Pharm (068760 KS) (market cap of 1.4 trillion won) – Up 7.8% (as of 12:15 PM, January 16th).
- Given the fact that one of the consistent issues with the Celltrion related companies has been its accounting, a merger of these three companies should help to clear up the negative perception of a potential accounting fraud. As such, the merger (or even the possibility of a merger) should have a positive impact on these three companies.
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