Tsuruha Investor Opposes Merger with Welcia

Tokyo, April 14 (Jiji Press)--A major stockholder in Tsuruha Holdings Inc. clarified Monday its stance against plans to merge the leading Japanese pharmacy chain with its biggest rival, Welcia Holdings Co., in a stock swap and subsequently make the merged company a consolidated subsidiary of Welcia's parent, Aeon Co., through a tender offer.

In a statement, Orbis Investments K.K., which holds a 9.7 pct stake in Tsuruha, said the plans significantly underestimate Tsuruha's corporate value, calling on other Tsuruha owners to oppose the integration scheme at a general shareholders meeting set for May 26.

Orbis specifically noted that Tsuruha is far more profitable than Welcia and is financially sound. The British fund manager also expressed discontent with Aeon's tender offer price set lower than the price at which it acquired Tsuruha shares from Hong Kong-based Oasis Management Co. last year.

To carry out the merger, Tsuruha needs to gain approval by at least two-thirds of shareholders at the meeting.

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