Kyung Nam Pharm, a local drug maker known for its vitamin supplement Lemona, has decided to receive letters of intent from April 22-24 to find a new owner.

The company plans to pick a buyer for its newly issued shares to become the biggest stakeholder. The preferred bidder will be chosen around May 10.

Some local firms, including Bio Genetics -- that intend to acquire the company -- are expected to join the bid.

Bio Genetics is a condom maker that bought 11.29 percent stake in Kyung Nam in February by investing around 15 billion won  ($13.19 million) in a partnership with local camping tent maker Liveplex.

In March last year, South Korean financial authorities suspended trading of its stocks, on suspicion of accounting fraud. Kyung Nam, which was listed on the Kosdaq market in 2001, was also placed at risk of being delisted by the Korea’s bourse operator Korea Exchange (KRX).

Fortunately, in January, KRX slapped a 12-month probation period on the firm to correct its accounting errors and improve management and financial conditions. Currently, its stocks are still suspended from trading.

By Song Seung-hyun (ssh@heraldcorp.com)