Japanese private equity firm Polaris Capital Group has made a tender offer to privatise the country’s pharmacy chain operator Sogo Medical Holdings that could value the Tokyo-listed company at about JPY76.5 billion ($696 million).
The drug stores operator indicated the approval of the takeover bid as disclosed by the Tokyo Stock Exchange on February 5. The bid was premised on subsequent delisting of the shares of Sogo Medical Holdings.
Mitsui & Co, one of Japan’s largest sogo shoshas that owns about 25.5 per cent shares in Sogo Medical Holdings, already accepted the tender offer from Polaris’s investment vehicle PSM Holdings, the parent company revealed on its website on the same date.
Tokyo-based Mitsui & Co. agreed to sell 7.64 million shares of Sogo Medical Holdings to PSM Holdings at a tender price of JPY2,550 ($23.2) apiece, amounting to a transaction volume of nearly JPY19.5 billion ($177 million). The Mitsui Group subsidiary will no longer hold any stake in the company post the transaction.
Once proceeds, the deal will value Sogo Medical Holdings at approximately JPY76.5 billion ($696 million).
Sogo Medical Holdings, founded in October 2018, offers prescription drugs and medications through brick-and-mortar stores in Japan. The company recorded 719 dispensing pharmacies and 155 licensed health support pharmacies at the end of the third quarter of 2019, according to its latest financial results.
The firm is also involved in the provision of consulting on comprehensive management of medical institutions, paid rental of equipment such as television, leasing and installation of medical equipment, planning, designing and construction of medical facilities, as well as medical and health information services.
Its operating income increased by 18.6 per cent year-on-year to JPY3.92 billion ($35.66 million), while the net sales grew by 14.7 per cent year-on-year to JPY121.97 billion ($1.10 billion) in the third quarter of 2019.