KKR&Co. (KKR.US) Plans to Acquire Japanese Yomeishu Manufacturer Stranded Because Major Shareholders Have No Intent to Sell Shares

The Zhitong Finance App learned that KKR & Co. (KKR.US) plans to acquire Yomeishu Manufacturing Co., Ltd. have stalled because the largest shareholder of the Japanese herbal supplement manufacturer has no intention of selling its shares. Yomeishu Manufacturing Co., Ltd. stated that due to shareholder Yuzawa KK's position, the company believes that the acquisition plan will not be successful, so it has terminated exclusive negotiations with KKR. Just half a day ago, Yomeishu Manufacturing Co., Ltd. just confirmed that it had granted KKR priority acquisition negotiation rights.

According to documents submitted by Yomeishu Manufacturing Co., Ltd. on Tuesday evening, the company will continue discussions with Yuzawa KK on privatization matters, including a possible acquisition plan proposed by Yuzawa KK. The company said that any purchase offer must be higher than KKR's valuation of Health Liquor at 4,021 yen per share.

Yuzawa KK is linked to the activist investor Yoshiaki Murakami. Yuzawa KK holds 27.99% of the tradable shares of Yomeishu Manufacturing Co., Ltd., and any takeover offer must be approved by it to be successful. Yomeishu Manufacturing Co., Ltd. stated in the submitted documents that KKR's purchase offer price is likely to be around 4,282 yen per share.

Tuesday was the last trading day of the year in Japan, and the stock price of Yomeishu Manufacturing Co., Ltd. rose 14% to 5,480 yen per share. Earlier, it was reported that Yomeishu Manufacturing Co., Ltd. is in negotiations with KKR. The company's stock price has increased by a cumulative total of 118% this year, with a market value of about 90 billion yen (approximately US$575 million).

Japan's series of corporate governance reforms have led to an increase in the number of privatized companies, and the number of management acquisitions is expected to reach a record high in 2025. Radical hedge funds are also increasingly disrupting Japan's privatization process. They push for stronger protection of minority shareholders' rights and push up takeover offers through pressure, thereby boosting stock prices.

The assets of Yomeishu Manufacturing Co., Ltd. include real estate and cash. The company has an 11-story office building in a prime location in the Shibuya district of Tokyo, where it is also headquartered.