TOKYO, Aug 29 (Reuters) - Japan's Kirin Holdings ( KNBWF )

has secured enough shares to take over supplement maker

Fancl ( FACYF ), its new president said, overcoming rival buying

by an overseas fund and furthering the beermaker's transition

into healthcare.

Takeshi Minakata, who rose to the top role in the company in

March, said he wanted to declare victory when Kirin's ( KNBWF ) tender

offer was due to close on Wednesday, but financial regulations

forced an extension to Sept. 11 after Hong Kong-based MY.Alpha

Management lifted its stake in Fancl ( FACYF ) to around 10%.

"We are confident about it," Minakata told Reuters on

Wednesday. "It's a bit of a shame that investors will have to

wait another 10 days, but our stance hasn't changed, nor the

money amount, and we believe the Kirin ( KNBWF ) group is the best partner

for Fancl ( FACYF )."

As of Thursday, Fancl ( FACYF ) had a market value of 364.1 billion

yen ($2.52 billion).

With previous roles heading Kirin's ( KNBWF ) drug subsidiary and

vitamin maker Blackmores Ltd, purchased in 2023 for $1.2

billion, Minakata's accession signalled a resolve to pivot from

alcohol businesses that face shrinking markets in Japan and

shifting consumer tastes overseas.

Kirin ( KNBWF ) in June launched a 220 billion yen ($1.5 billion)

tender offer for the roughly 70% of Fancl ( FACYF ) it did not already

own. Kirin ( KNBWF ) later extended the tender period and raised its offer

amid continued share purchases by MY.Alpha.

MY.Alpha, which has managed the Asian hedge fund business of

York Capital Management Global Advisors, did not reply to a

request for comment on its investment strategy in Fancl ( FACYF ).

Fancl ( FACYF ), known for its skin cleansing oils and nutritional

additives, fits into a health science portfolio that Kirin ( KNBWF ) aims

to grow into a new pillar of the group along with alcohol and

pharma. The company aims to expand the unit's annual revenue to

500 billion yen, about five fold last year's tally.

But organic growth will not be enough to get there, likely

necessitating more overseas acquisitions, Minakata said.

"We are naturally aiming for companies with a certain level

of unique technology, products and brands," he said. "In that

sense, North America is a big market that is still growing

significantly. I think it has great potential."

Minakata joined Kirin ( KNBWF ) in 1984, two years after the company

leveraged its fermentation know-how to make its first foray into

the pharma sector. He acknowledged it may take time for

consumers, particularly those overseas, to associate the Kirin

brand with drugs and health food rather than alcohol.

The timing for the push into supplements is hardly ideal

given broad consumer concerns following a tainted red yeast

product from Kobayashi Pharmaceutical ( KBYPF ) that was linked

to dozens of deaths in Japan this year.

The scandal led to the resignation of two top executives of

the 105-year-old company, a plunge in its shares and calls for

increased scrutiny of so-called functional foods with health

benefit claims.

Minakata said Kirin ( KNBWF ) has sufficient quality controls to allay

the risk of venturing into supplements and other products that

have shorter scientific track records.

"We have a process in place to earn the same level of trust

for all our products, regardless of how long or short the

development period is," he said.

In its legacy beer and beverage businesses, Kirin ( KNBWF ) remains in

fierce competition with Asahi Group Holdings ( ASBRF ), Suntory

Holdings, and Sapporo Holdings ( SOOBF ) for the same

domestic market. Analysts have long said the sector is due for

consolidation.

Now with Japanese retail giant Seven & i Holdings ( SVNDF )

receiving a surprise takeover bid from Canada's Alimentation

Couche-Tard ( ANCTF ) last week, the possibility of foreign

buyouts has become all the more salient. Minakata said Kirin ( KNBWF )

would have to consider any serious offer it received.

"We have to keep in mind that such a possibility is not zero

at all," he said. "We need to demonstrate that each of our three

main businesses is finding value in its own way, and we need to

do so more effectively."

($1 = 144.4300 yen)

($1 = 144.5400 yen)