Kolmar Korea Co Ltd will hold a special shareholders meeting on September 10 to vote on the sale of its pharmaceutical operations to IMM Private Equity, two months after the originally scheduled date of the meeting, according to a regulatory filing on August 26.

The passing of the proposal would mean Kolmar Korea Holdings Co Ltd, a holding company that owns 27.14% of Kolmar Korea, is one step closer to complete the deal that was signed in May. Shareholders who are opposed to the sale can exercise their appraisal within 20 days from the meeting date to request the company to buy back their shares, the filing said.

Kolmar Korea Holdings inked an agreement in May to sell Kolmar Korea’s contract manufacturing organization (CMO) business and a 62.1% stake in its subsidiary Kolmar Pharma Co Ltd to IMM Private Equity for about 512.4 billion won ($431 million). The move was part of a restructuring because Kolmar Korea’s financial position had weakened significantly due to increased debt taken to finance the 1.3 trillion-won acquisition of CJ Healthcare in 2018.

The shareholders meeting was delayed for two months because the buyer’s due diligence and the process of separating the CMO unit from Kolmar Korea took longer than expected. The deadline for the deal’s closing has not been determined yet. Negotiations between the two parties are ongoing based on the results of due diligence and the filing said the final value of the transaction can possibly be lowered by up to 15%.

If the amount of cash raised from the deal is reduced, Kolmar Korea may not be able to reduce its debt level as much as it originally hoped. The company’s debt ratio stood at 169.8% at the end of June. (Reporting by Se-hun Jo)