Taisho Pharma to Launch Tender Offer for Biofermin

Taisho Pharma to Launch Tender Offer for Biofermin

Tokyo, Feb 13, 2008 (Jiji Press) - Taisho Pharmaceutical Co. <4535> said Tuesday it plans to launch a tender offer for smaller rival Biofermin Pharmaceutical Co. <4517> to make it a consolidated subsidiary.

In the offer, which will run from Wednesday through March 11, Taisho aims to buy 7.53 million Biofermin shares, or 62 pct of its outstanding shares, at 3,620 yen apiece, a 22.71 pct premium over their closing price on the Osaka Securities Exchange on Friday. Total costs for the purchase will come to 27.2 billion yen.

Taisho aims to beef up its health food operations by acquiring Biofermin, which is strong in lactobacillus preparations.

If Taisho fails to obtain 4.88 million Biofermin shares, or 40 pct of the outstanding shares, it will not buy the offered shares.

Investment firm T-Zone Capital Inc., Biofermin's top shareholder with an equity stake of 38.28 pct, has approved the takeover bid, Taisho said.

Taishi said it intends to keep Biofermin listed on the OSE's first section even after the acquisition.

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