Japanese PE firm Polaris offers to privatise pharmacy chain Sogo Medical

Tamagawa Dori, Tokyo, Japan. Photo: Thomas Schmitz/unsplash

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.

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.