Takeda Pharmaceutical Company Limited [NYSE: TAK] declared Wednesday that it has finalized the deal to divest its Japan health care business unit. The Japan-based drug manufacturer has executed the divestiture of Takeda Consumer Healthcare Company Limited (TCHC) to Oscar A-Co KK. Oscar is a firm operated by funds administered by Blackstone Group Inc. and its associate.
The divestment deal was declared by the firm in August 2020. The firm divest its unit for a total value of JPY 242.0 billion. After the handover of shares, the TCHC will be barred from the possibility of an alliance of Takeda. It will work as Alinamin Pharmaceutical Co., Ltd.
Shares of Takeda plummeted 2.29% as it lost -0.43 during the trading session of Tuesday. Takeda disclosed that it is planning to utilize the profit from the sale of units to decrease its debt. Furthermore, the firm has also decided to use the profit to fast-track indebtedness towards its goal of 2x net debt/adjusted EBITDA within FY2021 – FY2023.
Additionally, TAK has also continued impetus in its sell-off strategy. It has topped its $10 billion non-core asset disposal goal. TAK has disclosed 12 pacts since January 2019, for a total combined value of up to around $12.9 billion.
Moreover, the sales price is presently predicted to be about JPY 230.0 billion, dependent on certain alterations. The alterations comprise the net debt and working capital of TCHC and Takeda Healthcare Products Company Limited as of March 31, 2021.