东亚社会控股吸收合并全资子公司东亚制药后盘中大涨

Dong-A Socio Holdings (000640.KS) rose more than 10% in early trading following news that it will absorb its subsidiary Dong-A Pharmaceutical.
According to the Korea Exchange, Dong-A Socio Holdings was trading at 89,000 won as of 10:08 a.m. on the 24th, up 10.56% from the previous session.
The buying interest is attributed to the company's announcement the previous day that it would merge with Dong-A Pharmaceutical, its 100% subsidiary.
Dong-A Socio Holdings said it held a board meeting the previous day and approved the plan to absorb Dong-A Pharmaceutical. Through the merger, the company plans to internalize Dong-A Pharmaceutical's business competitiveness and cash flow into the holding company, secure new investments and growth drivers, and integrate subsidiary management functions.
Expectations that the merger would resolve the holding-company discount stemming from potential duplicate listing of subsidiaries also affected the stock, analysts said. "We expect to enhance corporate value by resolving the holding-company discount arising from concerns over duplicate listing of key subsidiaries," a Dong-A Socio Holdings official said.
Meanwhile, the merger date for Dong-A Socio Holdings is October 1. The merger will proceed as a small-scale merger that does not issue new shares, so there will be no change in Dong-A Socio Holdings' shareholder composition or ownership ratios after the merger.