Kinabalu and Evive Merger Approved; NDF Support Deemed Crucial

Kinabalu held its shareholders' meeting today, lasting over three hours, primarily focusing on the share swap merger with Evive Biotech, which was ultimately passed with a majority. Kinabalu Chairman Chen Zheng stated that support from the National Development Fund (NDF) was the critical factor. The collaboration aims to create a 'US-Taiwan biomedical integration platform.' Under the plan, Kinabalu will become a 100% subsidiary of Evive and apply for delisting.

Generic drug maker Johnson Pharma, which has been increasing its stake in Kinabalu, voiced strong opposition, questioning the 1 to 0.909 swap ratio as a 'substantial discount' and 'unfair valuation.' Some shareholders at the meeting also raised concerns about Kinabalu's value being diminished. Despite the tension, the proposal for the share swap and delisting passed with 57.02% approval.

Chen noted that the synergy lies in role specialization: Taiwan will serve as the key manufacturing base, while Evive focuses on the US market. Evive added in a press release that the integration creates a complete value chain spanning R&D, manufacturing, and marketing across both regions. Johnson Pharma's General Manager Su Hao-hsi stated they would either seek board seats if the deal failed or negotiate for a share buyback since it passed.