Samyang Holdings, the parent company of Samyang Group, announced Friday its plan to spin off its biopharmaceuticals division into a new entity, Samyang Biopharm, in a move to refine the strategic focus of the biopharmaceuticals business.

According to the company, the restructuring will allow the unit, under independent leadership, to undergo a proper reevaluation and remain agile amid a rapidly evolving pharmaceuticals and biotech landscape.

The spinoff will also give shareholders greater flexibility to adjust their investment strategies, the company said.

“The structural realignment will enable Samyang Holdings to concentrate on its role as a holding company overseeing subsidiaries,” said CEO Eom Tae-ung. “Samyang Biopharm, in turn, will enhance management efficiency through independent and accountable leadership.”

Currently at the helm of Samyang Holdings are Eom and Kim Kyung-jin. After the spinoff, Eom will remain CEO of Samyang Holdings, while Kim will assume the role of CEO at the newly formed entity.

Samyang Biopharm is set to launch as an independent company on Nov. 1 and plans to list on the country's main bourse Kospi on Nov. 24. Trading of Samyang Holdings shares will be temporarily suspended from Oct. 30, the day before the share allocation date, until the day before relisting.

Under the spinoff, Samyang Holdings shareholders will receive shares in both the existing company and the new entity, proportional to their current ownership stakes, with the split ratio based on book value.

By No Kyung-min (minmin@heraldcorp.com)