[THE INVESTOR] Shares of Samsung BioLogics dropped over 7 percent on media reports that the country’s top financial regulator is likely to conclude that it committed accounting irregularities.
During a meeting held on May 31, the Financial Services Commission’s in-house oversight panel decided to uphold the Financial Supervisory Services’ provisional ruling on May 2 that Samsung BioLogics intentionally exaggerated the value of its affiliate to shore up its balance sheet and show profits in 2015, just before its listing on the following year, according to media broadcaster SBS. The opinion gathered at the meeting will be referred to the Securities and Futures Commission for a final ruling expected on June 7. The FSC directs FSS as an upper body.
Of the eight audit experts who attended the session, three stood at Samsung BioLogics’ side, four were with the FSS and one deferred his decision.
Samsung BioLogics’ stock has fallen over 15 percent in a month, erasing 5 trillion won (US$4.67 billion) from its market capitalization.
By Park Han-na (firstname.lastname@example.org)