Mitsubishi Chemical to divest Tanabe Pharma via split

Mitsubishi Chemical Holdings Corporation (TSE:4188) announced plans to divest its subsidiary, Mitsubishi Tanabe Pharma Corporation (MTPC), via a company split effective in the second quarter of fiscal year 2026. The transfer will see MTPC's full stock ownership and related assets shift to BCJ-94, a special purpose company indirectly owned by investment funds advised by Bain Capital Private Equity, LP. Mitsubishi Chemical expects to receive approximately ¥510 billion in consideration, subject to price adjustments. The decision, formalized at a board meeting today, March 28, 2025, aims to facilitate the previously announced transfer of MTPC under Bain Capital’s umbrella. Goldman Sachs provided a valuation report, estimating MTPC's value between ¥451.8 billion and ¥545.1 billion using a discounted cash flow method. The company anticipates recognizing a pre-tax profit of approximately ¥95 billion from the discontinued operations in the second quarter of fiscal year 2026. Shareholder approval is expected at the annual general meeting in late June 2025.