Samsung BioLogics shares soar as trading 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.
Our Kim Hye-sung has more on the market reaction on Tuesday,... and reasons behind the Korea Exchange's decision.

Samsung BioLogics resumed trading on Tuesday.
It's shares jumped around 18 percent from its previous close,... trading at 350 U.S. dollars per share as of 11:30 AM.
The rally comes as market uncertainties over the biotech arm of Samsung Group have been removed.
Trading in Samsung BioLogics was halted last month after the Financial Services Commission said the company had deliberately overstated the value of its affiliate Samsung Bioepis ahead of its IPO in 2016.
On Monday, the Korea Exchange's Corporate Review Committee concluded not to delist Samsung BioLogics, saying the firm's financial stability and continuity outweighed concerns about lack of management transparency.
Another reason for the decision was to protect the interests of investors.
In the worst-case scenario, Samsung BioLogics could have been removed from the stock market or given a probation period before it was allowed back onto the trading floor.
Samsung Biologics welcomed the ruling, and said it would strengthen its internal control system and prove the legitimacy of its accounting methods.
While the firm is back trading on the KOSPI, the legal battle with Korea's financial watchdog is still ongoing... making it a risk factor to the firm's business.
The Financial Services Commission has accused Samsung Biologics of accounting fraud. Samsung Biologics has denied any wrongdoing and has filed an administrative lawsuit against that.
Korea's administrative court is set to hold the first questioning session on December 19th.
Kim Hyesung, Arirang News.
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