Samsung C&T's stock price is rising following news of the corporate split of Samsung Biologics, of which it is the largest shareholder. Many investors appear to believe that splitting Samsung Biologics and Samsung Bioepis will increase corporate value.
Samsung C&T shares traded at 148,900 won in the pre-market at 8:36 a.m. on the 22nd. The stock price rose 7.12% (9,900 won) compared to the previous day's closing price. Samsung C&T's stock price had already jumped 11.74% (14,600 won) on the previous day.
The news of Samsung Biologics' corporate split is interpreted as stimulating investor sentiment. The key is to divide Samsung Biologics, which engages in contract development and manufacturing (CDMO), and Samsung Bioepis, which operates the biosimilar business.
The market evaluates that this corporate partitioning will allow Samsung Biologics to concentrate on its CDMO business and resolve conflicts of interest related to new drug development that have acted as obstacles in the order acquisition process. It is also forecasted that the corporate value related to biosimilar and new drug development will be properly assessed.
As a result, there is an effect of increasing the equity value held by Samsung C&T. Samsung Biologics' market capitalization as of the previous day's closing price is 78.3 trillion won, which is more than three times Samsung C&T's market capitalization of 23.6 trillion won.