Kirin drives pharma with Kyowa Hakko Kogyo buy

22 October 2007 10:58  [Source: ICIS news]

TOKYO (ICIS news)--Kirin Holdings Co, Japan’s biggest brewer, plans to purchase drugmaker Kyowa Hakko Kogyo Co to increase growth, synergies and competitive edge in the companies’ pharmaceutical segments, the companies said in a joint statement on Monday.

The companies signed a strategic partnership agreement on the basis that Kirin Pharma, Kirin’s pharmaceutical arm, and Kyowa Hakko Kogyo would integrate their businesses, the statement said.

Kirin will own 50.1% of the shares of Kyowa Hakko Kogyo after the takeover and an exchange of shares between Kirin Pharma and Kyowa Hakko.

Kirin plans to buy 111,578,000 shares of Kyowa Hakko at yen (Y) 1,500/share ($13/share), or about Y167.4bn from 31 October-1 December, the companies said.

The ratio of exchange would be 8,862 shares of Kirin Pharma per share of Kyowa Hakko, the companies said, adding Kyowa Hakko would issue a total of Y117.24m of shares. Kirin Pharma will be a wholly-owned subsidiary of Kyowa Hakko.

The new company will be named Kyowa Hakko Kirin Co and would start operating on 1 October, 2008 after completion of the integration process, the companies said.

($1 = Y114)

By: Tomomi Yokomura
+65 6780 4359

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