Mitsui & Co., Ltd has announced their decision to collaborate with ROHTO Pharmaceutical Co. in order to acquire stocks in Eu Yan Sang International Ltd. Headquartered in Singapore, Eu Yan Sang is primarily involved in the production and distribution of traditional Chinese medicines. The total cost of acquiring 100% of the company's stocks is estimated around the 88 billion yen mark.
Mitsui and Rohto will channel their acquisition through a jointly owned special purpose company, which is set to purchase roughly 86% of the stocks from Righteous Crane Holding, subject to a conditional sale and purchase agreement. Once the conditions laid out in the agreement are met, the special purpose company will proceed towards a takeover bid for the remaining 14% shares of Eu Yan Sang. Following this, the founding family of Eu Yan Sang will reinvest into the special purpose entity.
Excluding the income from the sale of Eu Yan Sang shares by Righteous Crane Holding, Mitsui anticipates their acquisition will cost them around 15 billion yen.
