Tokyo, Sept. 25 (Jiji Press)–Kobayashi Pharmaceutical Co. is considering going private, with a consortium of Japanese and British investment funds having proposed acquiring the company and overhauling its management, sources said Friday. According to the sources, Japan’s Nippon Sangyo Suishin Kiko Ltd. and Britain’s CVC Capital Partners PLC have proposed a tender offer for the Japanese drugmaker in partnership with its founding family, a major shareholder. Kobayashi Pharmaceutical said in a statement Friday that it “has received a preliminary, nonbinding joint proposal from entities affiliated with NSSK and CVC Capital Partners regarding a potential take-private transaction as a possible measure to enhance the company’s corporate value,” while noting that nothing has been decided on the matter at this moment. Currently listed on the Tokyo Stock Exchange’s top-tier Prime section, the company could be worth around 500 billion yen in such a deal. Kobayashi Pharmaceutical has been undergoing management reforms, including strengthening its quality-control operations, since health problems linked to its supplements containing “beni koji” red yeast rice came to light in 2024. Meanwhile, Hong Kong-based Oasis Management, an activist fund that holds more than 14 pct of the company’s shares, has intensified its criticism of the continued presence of former President Akihiro Kobayashi, a member of the founding family, on its board of directors. Oasis said that Kobayashi Pharmaceutical has not gone far enough in breaking with its reliance on the founding family. END [Copyright The Jiji Press, Ltd.]
