Kirin Holdings Co. Ltd., Kyowa Hakko Kogyo Co. Ltd. deal

Kyowa Hakko and Kirin's Kirin Pharma Co. Ltd. subsidiary will merge to create Kyowa Hakko Kirin Co. Ltd. Kirin Holdings will acquire 112 million shares (27.95%) of Kyowa Hakko for ¥1,500 per share, or about ¥167 billion ($1.4 billion), in a tender offer ending Dec. 6. The price is a 7% premium to Kyowa Hakko's close of ¥1,402 on Oct. 19, before the deal was announced.

On April 1, 2008, Kyowa Hakko will issue 177 million shares in exchange for 20,000 shares of Kirin Pharma. After the share exchange, Kirin Holdings will own 50.1% of the merged company, which will be valued at ¥560 ($4.8 billion) billion based on Kyowa Hakko's Oct. 19 close. The merger is expected to close Oct. 1, 2008. ...