This is to announce that, through our wholly managed and operated J-STAR Number 1 Investment Limited Partnership, we have established Medical Solutions K.K. (“MS”). On September 8, 2010, MS acquired shares of Apo Plus Station K.K. (Headquartered in Chiyoda-ku, Tokyo, CEO Tsuneko Hibino, “APS”).
APS was founded in 1993 to provide retraining and employment introduction to pharmacists. Since then, it has expanded its business through operating pharmacies and providing education services for medical representatives (MR). In 2000, APS became the first domestic company to establish business as a CSO (Contract Sales Organization) delivering sales and marketing services to pharmaceuticals, firmly establishing its stature as a leading company in its field.
Since its founding, APS has benefited from capital support from its many shareholders as it moves toward a public offering. Given recent market conditions, APS has decided to consolidate its shareholder structure, establishing greater management flexibility while reevaluating its public offering strategy.
On July 28, 2010, we presented our share acquisition proposal to all 85 APS shareholders. Thanks to overwhelming support, we received well over the predetermined requirement of a two-thirds majority and successfully completed the acquisition. In addition to the investment by J-Star Number 1 Investment Limited Partnership, Risona Bank provided financing as well. Under this agreement, President Hibino along with other APS inside shareholders will invest in MS through an MBO (management buyout). The respective directors of APS and MS will retain their posts, thereby maintaining the current business operation structure at APS. We will appoint our managers as part-time directors at MS and APS to provide support to management and employees.