Japanese, U.K. Funds Propose Taking Kobayashi Pharma Private

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.

[Copyright The Jiji Press, Ltd.]