Consideration of Toho Holdings' acquisition proposal for PHC Holdings has ended, sending PHCHD shares sharply lower. Following the withdrawal of the proposal, financial concerns over the buyer, Toho Holdings, are expected to ease.
Toho Holdings' announcement that it had ended consideration of its acquisition proposal for PHC Holdings sent shockwaves through the market, and PHC Holdings' share price plunged.
Developments surrounding the acquisition proposal had been reported since late September, and it was disclosed on 1 October that the proposal was under consideration. The formal announcement this time confirmed that consideration had ended.
PHC Holdings closed at ¥1,363 on the 13th, down ¥223 from the previous Friday, falling to a level below its 30 September close.
For the buyer, Toho Holdings, concerns over the substantial funding burden associated with making PHC Holdings a wholly owned subsidiary and the resulting deterioration in financial soundness may begin to ease.