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A group of domestic investment funds said it will announce a public tender offer to make Kanebo Ltd. a wholly owned subsidiary by purchasing each Kanebo share for 162 yen, according to Yahoo Asia news. The takeover bid through March 28 is aimed at acquiring a stake of some 30 percent in the struggling household products maker. As Kanebo stock has been delisted, the group decided on the purchase prices for the tender offer by taking Kanebo's businesses and assets into account.
If the takeover bid fails to buy enough shares, the group plans to apply for a corporate revitalization law that will still allow the funds to acquire all shares with cash. Meanwhile, Kao Corp., Japan's top household product maker, said it has converted Kanebo Cosmetics into a wholly owned subsidiary by purchasing a 14 percent stake from Kanebo, according to reports.