Samsung BioLogics delisted over accounting violations

pharmafile | November 14, 2018 | News story | Research and Development Business, Samsung, Samsung BioLogics, accounting, south korea 

South Korean firm Samsung BioLogics has been delisted from the South Korean stock exchange.

The decision has come after the South Korea’s top regulator said that the Samsung BioLogics intentionally breached accounting rules in inflating the company’s value ahead of its 2016 listing on the stock exchange.

The news comes after shares in the Korean company dropped by as much as 20% following the South Korean Securities and Futures Commission’s (SFC) indication that it would issue a ruling on the 14th of November.

Samsung BioLogics has denied wrongdoing, citing an agreement with its US partner as the reason for valuing its stake in Samsung Bioepis at fair market value (the price the shares would sell at on the open market) rather than at book value (the value as entered in the firm’s books).

“We concluded that the company violated accounting standards intentionally in 2015 to have legitimacy in changing its controlling power,” said Kim Yong-beom, chairman of the SFC.

The regulator also advised that the company dismiss their chief executive Tae Han Kim, who is not a member of the conglomerate’s controlling family. Representatives for Samsung Biologics have said they will appeal the decision.  

Louis Goss

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