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Samsung Bioepis Co Ltd, a biopharmaceutical development unit of Samsung Group, is considering listing on the NASDAQ to raise about 1.5 trillion won ($1.34 billion) to fund product development, a Bioepis spokeswoman said on Monday.
Samsung Bioepis is 90 per cent owned by Samsung Biologics, which is in turn 46 per cent owned by Samsung Electronics Co Ltd, 46 per cent by the group's de facto holding company Cheil Industries Inc and about 6 per cent owned by builder and general trader Samsung C&T Corp.
Cheil Industries and Samsung C&T are in the midst of a proposed $8 billion merger that has been opposed by activist U.S. hedge fund Elliott Associates. The merged group would have control of the group's biopharmaceuticals business, which Samsung identified in 2010 as a future growth engine.
Samsung Group will soon send proposals to investment banks before choosing advisors for the IPO, potentially during the first half of 2016, newspaper Korea Economic Daily reported earlier on Monday, citing an industry source and an investment banking source, all unnamed.
The market capitalisation of Samsung Bioepis is expected to be at least 8 trillion won, the Korea Economic Daily said citing the investment banking source.
The spokeswoman declined to comment on potential market capitalisation or the timing of the IPO. She said the offering was one of several options Samsung Bioepis was considering, and the NASDAQ was among multiple potential markets that could be tapped to raise funds.
If the Cheil-Samsung C&T merger is approved by shareholders, the merged entity, which would be controlled by Samsung Group heir apparent Jay Y. Lee and his two sisters, would have a majority stake in Samsung Biologics.
Bioepis, which was established in 2012, reported an operating loss of 25 billion won but expects to release two new products next year.
Bioepis develops biosimilar products, which are cheaper copies of existing drugs. The firm has sales agreements with global pharmaceutical firms such as Merck & Co Inc and Biogen Inc and targets 2020 revenue of 850 billion won.
($1 = 1,121.8900 won)
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