Temasek sells Celltrion stake in block deal
- PUBLISHED :April 02, 2020 - 15:55
- UPDATED :April 02, 2020 - 21:54
Ion Investments, an affiliate of Singaporean investment firm Temasek Holdings, sold millions of shares of South Korea’s biosimilar giant Celltrion and its distribution affiliate Celltrion Healthcare in a block deal before the markets opened, according to news reports on April 2.
The Singapore-based investment firm sold 2.57 million shares, or 1.9 percent, of Celltrion, and 2.21 million shares, or 1.5 percent, of Celltrion Healthcare via the block trading deal. The stock price of Celltrion fell 8.08 percent to 182,000 won ($147) in early morning trading while its affiliate’s shares dropped 9.62 percent to 71,400 won in the morning.
A block trade deal is the sale or purchase of a large amount of stocks at an arranged price. It usually takes places at after-hours trading in order to reduce fluctuations of the price.
Through the latest deal, Ion Investments retrieved some 619 billion won. Some 90 percent of the buyers were foreign investors. A Celltrion stock sold at 178,695 won, 9.8 percent off the closing price on April 1.
A share of Celltrion Healthcare was sold at 72,285 won with a discount rate of 8.5 percent.
In 2018, Ion Investments sold 2.23 million shares of Celltrion and 2.9 million shares of Celltrion Healthcare in a block trade. Temasek is fully controlled by the government of Singapore.
By Kim Young-won (firstname.lastname@example.org)