Funds Challenge Taisho Pharma Buyout Pricing in Court Over Unfair Shareholder Terms

Investment funds Curi RMB Capital and Oasis Management are challenging the pricing of Taisho Pharmaceutical Holdings' management buyout in court after failed negotiations concerning their forced divestment as minority shareholders, the Nikkei newspaper reported on Monday. Taisho's founding family secured 73% of the company in January through a tender offer of 8,624 yen per share, aiming to delist it. Although this offer was 55% higher than the share price before the announcement, it remained below Taisho's book value.In March, Oasis Management announced it was considering legal action over Taisho's $5 billion buyout—Japan's largest ever—claiming it was grossly unfair to minority shareholders. Curi's RMB Capital, which did not accept the tender offer, was subjected to a forced divestment. In February, RMB Capital stated that "the tender offer price was set unfairly low, which is not in the best interest of minority shareholders."