Huons Global moves to calm investors over controversial merger

Huons Global moved Friday to contain growing shareholder concerns over a planned merger between two of its affiliates, saying the deal is critical to securing the prescription drug and health supplement conglomerate’s long-term growth engine and stabilizing funding for its unprofitable biotech unit. The holding company said it will hold a shareholder meeting to explain the rationale behind the merger of Huons and Huonslab, while also gathering investor feedback on the transaction and its potential impact on minority shareholders. The announcement comes days after Huons, a subsidiary of Huons Global, approved a merger agreement to absorb Huonslab during a board meeting held Sunday. Huonslab, a biotechnology affiliate focused on innovative biopharmaceutical development, currently operates without a revenue base and has been posting widening losses as it accelerates research and development efforts. The company recorded an operating loss of 10.2 billion won ($6.7 million) last year, with the deficit widening 20.8 percent from a year earlier, according to Huons Global. Huons Global said the