Dongwha Pharm has become Hironic's largest shareholder by acquiring the aesthetic medical device company with a total investment of 160 billion won ($119 million).

Through a public announcement last Friday, Hironic said it has decided to transfer 8,383,277 shares held by its largest shareholder, CEO Lee Jin-woo, and related party, Lee Eun-sook, to Dongwha Pharm.

The price per share is 14,400 won, and the total purchase price is 120.79 billion won. Dongwha Pharm now owns a 45.09% stake in Hironic. The change of the largest shareholder is scheduled for Dec. 13.

Hironic will also conduct a third-party allotment capital increase worth 40 billion won with Dongwha Pharm as the allotted party.

The new shares to be issued are 5.58 million redeemable convertible preference shares (RCPS). They will be issued at a price of 7,158 won, a 10 percent discount to the reference stock price. The payment date for the capital increase is Dec. 13.

The RCPS held by Dongwha Pharm will have voting rights and, if all RCPS are converted into common shares, will represent 30.1 percent of the outstanding shares.

Hironic plans to use 5 billion won from the proceeds for facilities, and 35 billion won as operating funds.

Hironic, founded in December 2007, is a cosmetic medical device company that manufactures HIFU (High-Intensity Focused Ultrasound) products, such as “Doublo” and “V-RO”; Nd: YAG laser surgical device “PICOHI300”; and general electric surgical device “SILKRO.” Its subsidiaries include Hironic Korea, which sells skincare devices to hospitals, and Attibe Beauty, which manufactures and distributes home beauty care devices.

Hironic is also scheduled to launch “HOMETHREA 3,” a new personal beauty device that applies both RF (radio frequency) and HIFU, in the second half of this year. Hironic has a dedicated overseas sales department and exports its products to more than 60 countries in Europe, China, and Japan. It has received product licenses in Europe, Brazil, Peru, and Vietnam.