Jeil Pharmaceutical Co., Ltd. (KOSE:A002620) announced the spin-off of its pharmaceuticals manufacturing and sales business on January 16, 2017. Under the terms of the deal, the capital of Jeil Pharmaceutical Co. will be reduced to 29.26% of the original capital and the spun-off entity will have a capital of KRW 181.28 billion comprising 10,504,493 shares.

Spin-off ratio was computed based on the September 30, 2016 balance sheet, spin-off target business department net assets book value divided by the sum of net asset book value before spin-off and treasury stock book value before spin-off. For the year ended December 31, 2016, pharmaceuticals manufacturing and sales business reported total assets of KRW 394 billion and total common equity of KRW 173 billion. Jeil Pharmaceutical Co., Ltd. will be renamed to Jeil Pharma Holdings, Inc. and the spun-off newly established business will be incorporated as Jeil Pharmaceutical Co., Ltd., which will be listed on KSE market.

The deal is subject to the approval of more than two-third of the voting rights of the shareholders of Jeil Pharmaceutical. The general meeting of shareholders of Jeil Pharmaceutical is scheduled on April 27, 2017. The deal was approved at the general meeting of shareholders of Jeil Pharmaceutical on April 27, 2017.

The record date of the transaction is May 31, 2017. The deal is expected to be completed by June 1, 2017, the pay date is scheduled to be July 14, 2017 and the listing date is July 17, 2017.