Samsung BioLogics shares to remain listed, trade resumes
- 5 years ago
The operator of South Korea's stock markets decided on Monday to allow traders to resume buying and selling shares of Samsung Biologics... and that's exactly what investors started doing about an hour ago.
For more, we connect to our business correspondent Kim Hyesung who is on the line for us.
Hyesung, just start by telling us more about the ruling?
Right, Mark so the Korea Exchange said yesterday that Samsung BioLogics is qualified to continue trading on the benchmark KOSPI.
The ruling comes after the bio arm of Samsung Group had been suspended since November 14th,...after the Financial Services Commission said the company deliberately overstated the value of its affiliate Samsung Bioepis ahead of its IPO in 2016, which raised about two billion U.S. dollars.
The Korea Exchange's Corporate Review Committee concluded there are some concerns about management transparency, but said it took into account Samsung BioLogics' business outlook, revenues and profitability to keep it listed on the KOSPI.
And another reason,..to protect the interest of investors.
The ruling comes earlier than expected as the deadline for the decision on whether or not to allow trading had been set for December 31st.
But then keep in mind that, although its back on the KOSPI, the legal battle with Korea's financial watchdog is still ongoing.
The FSC accused Samsung Biologics of accounting fraud, and Samsung Biologics denied any wrongdoing and has filed an administrative lawsuit against that.
2. So Samsung BioLogics resumed trading... around 60 minutes ago ...how's it looking?
Shares of Samsung BioLogics soared twenty percent compared to the session before it was suspended, trading at about 360 U.S. dollars per share as of 10 AM.
This comes as market uncertainties have been removed.
I mean, again, in the worst-case scenario, Samsung BioLogics could have been removed from the stock market or it be given a probation period before it was allowed back to the trading floor.
As for Samsung Biologics, it welcomed the ruling, and in a statement said it would strengthen its internal control system and planned to prove the legitimacy of its accounting methods.
Given it's the eighth biggest firm in market capitalization on the KOSPI, with a market cap of 19-point-five billion dollars.... its reinstatement also helps lift Korea's biosector shares and the KOSPI.
But the legal battle with the financial authorities remain a risk factor.
That's all I have for now, Mark.
For more, we connect to our business correspondent Kim Hyesung who is on the line for us.
Hyesung, just start by telling us more about the ruling?
Right, Mark so the Korea Exchange said yesterday that Samsung BioLogics is qualified to continue trading on the benchmark KOSPI.
The ruling comes after the bio arm of Samsung Group had been suspended since November 14th,...after the Financial Services Commission said the company deliberately overstated the value of its affiliate Samsung Bioepis ahead of its IPO in 2016, which raised about two billion U.S. dollars.
The Korea Exchange's Corporate Review Committee concluded there are some concerns about management transparency, but said it took into account Samsung BioLogics' business outlook, revenues and profitability to keep it listed on the KOSPI.
And another reason,..to protect the interest of investors.
The ruling comes earlier than expected as the deadline for the decision on whether or not to allow trading had been set for December 31st.
But then keep in mind that, although its back on the KOSPI, the legal battle with Korea's financial watchdog is still ongoing.
The FSC accused Samsung Biologics of accounting fraud, and Samsung Biologics denied any wrongdoing and has filed an administrative lawsuit against that.
2. So Samsung BioLogics resumed trading... around 60 minutes ago ...how's it looking?
Shares of Samsung BioLogics soared twenty percent compared to the session before it was suspended, trading at about 360 U.S. dollars per share as of 10 AM.
This comes as market uncertainties have been removed.
I mean, again, in the worst-case scenario, Samsung BioLogics could have been removed from the stock market or it be given a probation period before it was allowed back to the trading floor.
As for Samsung Biologics, it welcomed the ruling, and in a statement said it would strengthen its internal control system and planned to prove the legitimacy of its accounting methods.
Given it's the eighth biggest firm in market capitalization on the KOSPI, with a market cap of 19-point-five billion dollars.... its reinstatement also helps lift Korea's biosector shares and the KOSPI.
But the legal battle with the financial authorities remain a risk factor.
That's all I have for now, Mark.