Chairman YJ Kim and his affiliates to become the largest shareholders of Handok by winding up joint-investment agreements with Sanofi

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  – Concluded a shareholding relationship in line with the future growth strategy of the company and the change of market environment


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  – Resulted in the shareholding structure change; the largest shareholder chairman YJ Kim and affiliates will take 46.83% ownership and the new shareholder IMM Private Equity 30% ownership


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  – Will leap to a total healthcare company with facilitating new product development and pursuing overseas business opportunities


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September 27, 2012, Seoul, Korea – Handok pharmaceuticals Co. announced that Handok and the Sanofi group concluded a joint shareholding relationship. According to an agreement signed by both parties, Sanofi will divest its 50% stake in Handok. Sanofi’s shares will be acquired by Chairman YJ Kim and his affiliates, and IMM Private Equity. Upon closing, the status of Handok Chairman YJ Kim and his affiliates will change from the 2^nd largest to the largest shareholder of Handok.  As a result of the transaction, Chairman YJ Kim and his affiliates will hold a 46.83% stake in Handok and IMM Private Equity, the second largest shareholder, will hold a 30% stake. IMM Private Equity is a large-sized Private Equity Fund (PEF) management company in Korea, whose fund commitments exceed more than 1.4 trillion won.

Handok, was established in 1954 and entered into a joint-investment agreement in 1964 with Hoechst (a Sanofi legacy company). Handok, has been growing up as a joint-corporation for about 50 years 쭯Through the collaboration, Handok has adopted overseas advanced pharmaceutical technologies, and has manufactured and provided quality medicinal products to the country. Since 2006 Handok has been operated independently for a win-win partnership with Sanofi and has successfully managed the operation. With this change of shareholding structure, Handok is able to in effect complete the independent management and secure the management right for its own decision making through the largest shareholder, Chairman YoungJin Kim and his affiliates.

Handok Chairman YJ Kim said, “We have been considering changes to cope with such drastically changing pharmaceutical markets. Although the pharmaceutical industry is faced with a difficult period, Handok was given a chance with this new beginning to grow into Korea’s representative total healthcare company, and further into a global company equipped with international standards.”

Handok announced that the company is planning to implement its future growth strategies in full gear, and some of which have already entered into progressive stages to some extent: ⊂Secure the capability of new product development and Enter the clinical stages of its new drug entities and Launch; ⊂Jump to a total healthcare company through new business opportunities; ⊂Make inroads into both emerging and developed markets; ⊂Extend an introduction of innovative new products

The Representative Director of IMM Private Equity, InJoon Song said, “We thought highly of Handok Pharmaceutical Co.’s transparent management style maintained for almost 60 years, and of its global standard system that has been developed as a joint venture corporation with a global pharmaceutical company.”  And he commented, “Our investment decision was made regarding Handok because we believe Handok will become one of the high performing companies once the pharmaceutical market is to be reorganized in the future.”

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