Blackmores’ major shareholder Marcus Blackmore will back a $1.9 billion takeover bid from Kirin Corporation, one of Japan’s largest brewers and the owner of the Lion drinks business.

The vitamins maker told the ASX on Thursday morning that its board was backing the offer from Kirin, which, if successful, would result in the drinks giant acquiring all of Blackmores’ stock at $95 per share.

Blackmores shares rocketed by 20.6 per cent at the market open to $92.60.

The offer values Blackmores at $1.9 billion, with the $95 per-share price tag representing a 23.7 per cent premium to the company’s Wednesday closing price of $76.79.

The company confirmed that Marcus Blackmore, the group’s largest shareholder and son of founder Maurice Blackmore, has agreed to vote his shares in favour of the agreement for Kirin to buy the company.

Blackmore, who owns an 18 per cent stake in the business, has made no secret of the fact that he believes the group’s current management has made too many excuses for poor performance at the vitamins maker. 

Blackmores shares have declined by 34.7 per cent over the past five years, and despite outlining a global expansion strategy, the group has been hit by the impacts of the pandemic and the loss of international shoppers from China over the past few years. Daigou shoppers have underpinned the group’s domestic vitamins sales and were largely lost during lockdowns.

Sales have bounced back and the group saw a jump in half-year profits of close to 20 per cent for the first six months of this year. However, input costs have continued to rise and Blackmores has had to put through price increases for products in all its major markets.