Major supermarket operator Aeon is set to make drugstore chain Tsuruha Holdings a subsidiary next week following a tender offer that ended Tuesday.
Aeon said Wednesday that it received sell offers for 50.11% of Tsuruha shares in terms of voting rights in the tender offer, which ran from Dec. 3. Aeon will acquire all of the shares, and Tsuruha will become an Aeon subsidiary on Wednesday next week.
Tsuruha will remain listed on the Prime section of the Tokyo Stock Exchange.
Aeon revised up its consolidated earnings estimates, reflecting the acquisition of Tsuruha. For the year ending next month, operating revenue is projected at ?10.7 trillion, up from the previously forecast ?10.5 trillion, with operating profit at ?275 billion, up from ?270 billion, and net profit at ?60 billion to ?70 billion, up from ?40 billion.
In the tender offer, Aeon proposed buying Tsuruha shares at ?2,900 apiece. As sell offers failed to reach Aeon¡¯s target of 50.9%, the company will additionally buy Tsuruha shares on the stock market to raise the ownership to that level by the end of April.
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