Fujifilm buying Toyama for up to $1.46B

Japanese digital camera and medical equipment conglomerate Fujifilm Holdings plans to strengthen its life science operations by acquiring midsize domestic drugmaker Toyama Chemical. The deal could cost as much as 155.0 billion yen ($1.46 billion), but certainly in excess of 100.0 billion yen, the firm said. Fujifilm said it will launch a tender offer for Toyama, planning to buy outstanding shares in the firm at 880 yen apiece. The offer will close March 18.

Under the terms of the deal, in late February, Toyama will issue a total of 30.0 billion yen of new shares for allotment to Fujifilm and Taisho Pharmaceutical which is Toyama's leading shareholder at present. Fujifilm and Taisho will accept 19.8 billion yen and 10.2 billion yen of the new shares, respectively. Fujifilm will eventually own 66% of Toyama, while Taisho will raise its stake in the firm to 34% from the current 21.8%. On completion of the deal, Toyama will likely be delisted.