Kirin Holdings Co has postponed its purchase of a majority stake in Fancl Corp, setting a new 11 September deadline, amid challenges posed by significant share acquisitions by hedge fund MY.Alpha Management HK Advisors, which now controls over 10% of Fancl’s voting rights, according to a report by Bloomberg.
Kirin noted in an exchange filing on Wednesday that it had already garnered sufficient shares to proceed with the takeover, though the possibility remains for shareholders to withdraw their acceptance until the final deadline. Kirin’s extension is mandated under Japanese takeover regulations following MY.Alpha’s increased investment.
Kirin, originally offering ¥2,690 per share for the cosmetics and dietary supplements company, has since increased its bid to ¥2,800 per share.
The potential remains for Fancl shareholders to challenge the fairness of the offer price, a scenario seen in recent legal precedents such as Tokyo’s court ruling in favor of activist shareholders against Itochu Corp’s underpriced bid for FamilyMart Co in 2020.
Should the Fancl deal falter, Kirin’s Chief Operating Officer, Takeshi Minakata, has indicated that the company will explore alternative avenues within its health science strategy, possibly looking towards acquiring additional overseas assets.
