Please login to the form below

Not currently logged in
Email:
Password:

Kirin USD 1.5bn takeover bid for Kyowa Hakko

Japanese brewer Kirin has placed a USD 1.5bn bid for pharmaceutical company Kyowa Hakko Kogyo, which has accepted the offer

Japanese brewer Kirin has placed a USD 1.5bn bid for pharmaceutical company Kyowa Hakko Kogyo, which has accepted the offer.

Kirin will merge its pharmaceutical unit with Kyowa Hakko in 2008.

Kirin will purchase 50.1 per cent of Kyowa's outstanding shares through public bidding and swapping Kirin with Kyowa Hakko shares, according to a joint statement.

Of the 50.1 per cent acquired, Kirin will then buy 28 per cent, or 111,578,000 shares in Kyowa through the public bidding.

Kirin is offering to buy Kyowa shares at JPY 1,500 (USD 13.17) each, or 7.6 per cent higher than the share's last trading price, which puts the total value of bidding at JPY 167.4bn (USD 1.5bn).

Japanese breweries have been diversifying to offset slowed growth, as consumers have changed their drinking habits; switching to wine and other alcoholic beverages.

Kyowa Hakko's stock fell 0.57 per cent to rest at JPY 1,394 (USD 12.20) on the Tokyo Stock Exchange in a.m. trading on 22 October, a better performance than the 3.2 per cent drop in the key Nikkei-225 index following heavy losses on Wall Street.

Kyowa will become a consolidated subsidiary of Kirin in April 2008 and will have a combined drug business revenue of about JPY 200bn, putting it on par with the industry's 10th-largest company, Shionogi.

Kyowa and Kirin will merge on 1 October 2008 to create Kyowa Hakko Kirin, led by Kyowa Hakko's president, Yuzuru Matsuda.

Kirin president Kazuyasu Kato said at a news conference: "We aim to be a Japanese company that is strong in research and development and can vie with the world's top firms."

30th September 2008

Share

Subscribe to our email news alerts

Featured jobs

PMHub

Add my company
The Good Ideas Group

Remarkable but responsible creative work. We're most passionate about the pursuit of original, powerful ideas that our clients can harness...

Latest intelligence

Report: Reinventing product and portfolio value for the biopharmaceutical industry
Gain practical advice on determining and communicating product and portfolio value, including why, in fast-paced and evolving markets, you need to consider the evidence requirements of a growing network of...
Neil Thompson
How AI is finally helping rare diseases gain more than just attention
By Neil Thompson...
Is communication failing us?
Compelling people to care in a world oversaturated with news and information...