GNI (TYO:2160) has resolved to acquire all shares of Ayumi Pharmaceutical for 44.8 billion yen, turning it into a wholly owned subsidiary to gain a commercial platform in Japan's pharmaceutical market, according to three Tokyo bourse filings on Friday.
To fund the acquisition, GNI will issue nearly 10 million new shares via third-party allotment to Ayumi's existing shareholders, namely Blackstone affiliate BCP Asia AYM, Toho (TYO:8129), and Hisamitsu Pharmaceutical (TYO:4530), with 26.8 billion yen of the purchase price settled through contribution in kind.
The remaining 18 billion yen will be paid in cash, partially financed through a 20 billion yen loan from Mizuho Bank and SBI Shinsei Bank.
As a result, BCP Asia AYM will become GNI's largest major shareholder with a 10.63% voting rights stake after the transaction.
The deal is expected to close between June and September, pending regulatory approvals and securities registration effectiveness.
Ayumi Pharmaceutical owns Ayumi Pharmaceutical Co., a maker of antipyretic analgesics and anti-rheumatic drugs, which has shown steady revenue growth from 31 billion yen to 38.5 billion yen over three years.