By Kosaku Narioka
Fancl shares were indicated sharply higher after Japanese beer maker Kirin Holdings said it is considering fully acquiring the Japanese cosmetics and dietary-supplement company.
Shares of Fancl were indicated 21% higher at the limit high of 2,284.5 yen on Friday morning. No shares changed hands as buy orders overwhelmed sell orders.
Kirin said Friday that its board will later in the day discuss the potential acquisition of shares in Fancl it doesn't already own. Kirin holds a stake of about 33% in the cosmetics and supplement maker.
That would follow Kirin's move in August to buy Australian nutritional supplement maker Blackmores for 1.88 billion Australian dollars (US$1.25 billion) in a bid to expand its supplement business.
Kirin issued a statement after Japanese business daily Nikkei reported that the beverage maker will make a tender offer for Fancl to turn it into a wholly owned unit as part of efforts to diversify its business lines amid sluggish growth in the beer market.
Kirin is expected to spend about Y210 billion (US$1.34 billion) to buy the remaining shares and aims to complete the acquisition by the end of the year, the Nikkei report said.
Shares in Kirin were recently 1.4% lower.
Write to Kosaku Narioka at kosaku.narioka@wsj.com
(END) Dow Jones Newswires
June 13, 2024 23:24 ET (03:24 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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