Yomeishu Seizo (TYO:2540) plans to go private with support from its largest shareholder, investment firm Yuzawa, after takeover talks with KKR collapsed, Nikkei reported Tuesday.
Yuzawa, which owns over 30% of Yomeishu and is effectively controlled by Yukihiro Nomura, a relative of activist investor Yoshiaki Murakami, plans to delist the company via a tender offer. It then intends to sell Yomeishu's core medicinal liqueur business and other operations, with proceeds potentially reaching several billion yen, according to the report.
Yuzawa told Yomeishu in late December that it was considering a tender offer at 4,021 yen or higher, below Monday's close of 4,215 yen, implying a possible discount offer, the report said.
Potential buyers include Tsumura (TYO:4540), Japan's leading prescription herbal medicine maker, and private equity firm MBK Partners. Yuzawa is expected to retain some assets such as securities and Tokyo real estate after selling the operating businesses, according to the report.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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