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Taisho Pharmaceutical HD announces privatization through self-acquisition – Aiming for sustainable growth and business model strengthening through a management buyout (MBO) valued at approximately 7 trillion yen.

Taisho Pharmaceutical Holdings (HD) has announced that it will conduct a management buyout (MBO), aiming to delist its shares and operate as a private company. This will allow the company to focus on strengthening its business model, as well as enhancing its electronic commerce capabilities.

The acquisition is planned to be led by Shigeru Uehara, the company’s vice president and a member of the founding family, alongside key members of the management team. The total acquisition cost is expected to be approximately 7 trillion yen, with shares to be publicly purchased at 8,620 yen per share (closing price as of the 24th was 5,545 yen).

In response to the slowing growth of the over-the-counter pharmaceutical market, which has been the mainstay of the company’s operations, Vice President Uehara has made this bold managerial decision. Taisho Pharmaceutical HD already operates as the holding company of Taisho Pharmaceutical Group, which manufactures and sells pharmaceutical products, and this decision reflects a long-term perspective, indicating an intention to pursue sustainable growth, rather than simply short-term profit.

An MBO refers to a situation where the management team acquires shares of the company to own the management rights. The MBO of Taisho Pharmaceutical HD is expected to enable more strategic business decisions by transitioning from a partially listed company to a fully private entity.


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