(Bloomberg) -- Kirin Holdings Co. extended its deadline to accept tender offers for its proposed takeover of Fancl Corp, a potential boost for some investors in the skincare brand who have been agitating for a higher price.
The brewer, which is looking to reduce its reliance on beverages, made a bid last month to acquire two-thirds of Fancl that it doesn’t already own for around ¥220 billion ($1.4 billion). The new deadline for the tender offer was extended from Monday to Aug. 13.
Fancl shares have been trading above Kirin’s offer of ¥2,690 per share, suggesting that the market is expecting a higher bid. My.Alpha Management HK Advisors Ltd., a Hong Kong—based hedge fund, recently increased its stake in Fancl to around 8% from 5.1%. Although the investor is unlikely to push for a higher price, its disclosure of a significant position may encourage other investors to step forward with their intentions to block the bid at the current price, people familiar with the matter have said.
Kirin gave no indication that it plans to change its offer, which it said “sufficiently reflects the value of the target company.” The brewer extended its deadline after “taking into consideration the overall situation of, among others, the applications to the tender offer since its commencement, as well as the prospects for future applications.”
Kirin, which initially took a stake in Fancl five years ago, made its tender offer on June 14 at a 40% premium to Fancl’s closing price from the previous day. The beverage and beer company is facing pressure from the government to regulate healthy drinking habits. Kirin acquired Blackmores Ltd., an Australian vitamins maker, for about $1.2 billion last year.
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