Australia's Blackmores gains most since 2015 on buyout bid from Japan's Kirin

Kirin Holdings Co

27/04/2023 04:30

(Adds commentary from JPM)
    ** Shares of natural health firm Blackmores Ltd  BKL.AX 
soar as much as 22.4% to A$94, their best intraday pct gain
since Oct 29, 2015
    ** Co says it entered a deal to be acquired by Japan's Kirin
Holdings  2503.T  for A$1.88 bln ($1.24 bln)
    ** Deal for A$95 cash per share, a 23.7% premium to the
shares' last close 
    ** Shares hit highest level since Dec 16, 2021
    ** About the 240,000 shares traded so far, set to be highest
since March 2, 2022 and about 10x the 30-day average
    ** Given we see limited regulatory risk in deal proceeding
and the unanimous recommendation of the Board and Marcus
Blackmore's support, expect BKL share price to trade close to
the Scheme terms - JP Morgan
        ** Still, JPMorgan said it wouldn't rule out interest
from other suitors as Blackmores is the leading brand in ANZ
region and many other countries and synergies, cost-reduction
initiatives may be more easily achieved in an unlisted or
different shareholding structure
    ** As of last close, BKL up 6.4% YTD

    ($1 = 1.5142 Australian dollars)
    

 (Reporting by Harshita Swaminathan and Mehr Bedi)
 ((Harshita.Swaminathan@thomsonreuters.com))