Ildong Pharmaceutical may be takeover target

Green Cross Corporation, a Gyeonggi-based pharmaceutical company, issued a public notice yesterday that it has acquired additional shares of Ildong Pharmaceutical Company, becoming the second-largest shareholder after the owner family.

Industry sources note the move could be seen as a hostile takeover, which would eventually pave the way for Green Cross Corporation to gain management rights.

According to Green Cross Corporation, it has expanded its share holding of Ildong Pharmaceutical Company by purchasing an additional 14.01 percent of shares, adding to the 15.35 percent shares it had. With the additional purchase mainly from retail investors, Green Cross Corporation now owns 29.36 percent of Ildong Pharmaceutical shares. The owner-family Chairman Yun Won-young holds 34.16 percent of shares.

This is the third time Green Cross Corporation has made a move to purchase shares of Ildong. The first was in March 2012, when it bought 8.3 percent, and it then purchased 7.1 percent in December of the same year.

Both times, Green Cross Corporation said the move was part of a “simple investment.” Yesterday, an official from Green Cross said the move is to “create synergy.” “It’s not a hostile takeover,” the official said.

Meanwhile, shares of Green Cross Corporation fell 0.78 percent to close at 128,000 won ($120) yesterday in Seoul. The share acquisition notice was made after the stock market closed at 3 p.m. Shares of Ildong Pharmaceutical went up 2.59 percent to close at 11,900 won.

BY LEE EUN-JOO [angie@joongang.co.kr]