CCM Duopharma Biotech Berhad completed the acquisition of 8.4% stake in PanGen Biotech Inc. from Chemical Company of Malaysia Berhad.
June 28, 2018
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CCM Duopharma Biotech Berhad (KLSE:CCMDBIO) entered into agreement to acquire 8.4% stake in PanGen Biotech Inc. (KOSDAQ:A222110) from Chemical Company of Malaysia Berhad (KLSE:CCM) for KRW 16.4 billion on April 13, 2018. As per the terms of agreement, CCM Duopharma Biotech Berhad will acquire 0.8 million. The mode of payment is cash. The transaction is expected to be financed entirely through bank borrowings. The transaction is subject to the approval of the shareholders of Chemical Company of Malaysia Berhad in relation to the disposal and transfer of the Sale Shares to CCM Duopharma Biotech Berhad; the approval of the shareholders of CCM Duopharma Biotech Berhad in relation to the purchase and transfer of the Sale Shares from Chemical Company of Malaysia Berhad and other conditions. Shareholders meeting of Chemical Company of Malaysia Berhad to approve the transaction will be held on May 31, 2018. Board of Chemical Company of Malaysia Berhad and Hong Leong Investment Bank Berhad recommended Chemical Company of Malaysia Berhad shareholders to vote in favor of transaction. The transaction is expected to close on second quarter of 2018. As of May 18, 2018 transaction is expected to close in mid-June. The proceeds from sale will be used to repay bank borrowings. As of June 7, 2018, Board of Directors of CCM Duopharma Biotech Berhad has accepted the revolving credit facility of KRW 21.4 billion ($20 million) by Overseas Chinese Banking Corporation to finance the transaction. Apart from that, the credit facility would be utilized for general working capital requirement and other investments. As on June 13, 2018, all applicable conditions precedent have been fulfilled and completion will take palce within five working days from unconditional date. As of June 21, 2018, deal is postponed and now expected to close on June 29, 2018.
UOB Kay Hian Securities (M) Sdn Bhd. acted as financial advisor and Kenanga Investment Bank Berhad (KLSE:KENANGA) acted as independent financial advisor to CCM Duopharma Biotech Berhad. Maybank Investment Bank and Hong Leong Investment Bank Berhad acted as financial adviser to Chemical Company of Malaysia Berhad.
CCM Duopharma Biotech Berhad (KLSE:CCMDBIO) completed the acquisition of 8.4% stake in PanGen Biotech Inc. (KOSDAQ:A222110) from Chemical Company of Malaysia Berhad (KLSE:CCM) on June 29, 2018.
Pangen Biotech Inc. is a Korea-based company primarily engaged in the bio pharmaceuticals development technology transfer services. The Company mainly provides contract services for the manufacture of bio pharmaceuticals, bio pharmaceuticals development technology transfer services for the manufacture of Chinese hamster ovary (CHO) cell lines and the process of products and gains royalty from the services. The Company also provides reagents which are used for the development of bio pharmaceuticals. In addition the Company is also engaged in the development of bio pharmaceuticals such as Biosimilar EPO, Recombinant Factor VIII and Biosimilar G-CSF. The Company provides its services within domestic market and to overseas markets such as China, India, Mexico, America and Europe.
PANGEN BIOTECH INC. 
