SINGAPORE: Two Japanese firms are outlaying US$594 million (S$800 million) to buy out local traditional Chinese medicine maker Eu Yan Sang.
Japanese trading house Mitsui & Co announced on April 4 that a special purpose entity it has set up with Rohto Pharmaceutical will buy around 86 per cent of Eu Yan Sang from Righteous Crane Holding.
Righteous Crane is a holding company managed by Tower Capital TCM Holdings, Temasek’s Blanca Investments and certain members of the founding family of Eu Yan Sang.
Once the deal is completed, a bid will be made to acquire the remaining 14 per cent of Eu Yan Sang, said Mitsui, which added that the Eu family will reinvest partially in the Mitsui-Rohto special purpose company.
Mitsui will hold a 30 per cent or so effective interest in Eu Yan Sang’s shares, while Rohto Pharmaceutical will account for about 60 per cent, and the Eu family around 10 per cent.
Eu Yan Sang was founded in 1879 and now operates more than 170 retail outlets in China, Hong Kong, Macau, Malaysia and Singapore. Its website notes that it also runs 30 clinics in Singapore, Malaysia, Hong Kong and China, and a food and beverage outlet in Malaysia.
Righteous Crane Holding privatised Eu Yan Sang in a 2016 deal that valued the firm at about $269 million. -Straits times/ANN
