Japanese cosmetics firm Shiseido says it is in talks to sell its lower-priced skincare and shampoo lines to private equity firm CVC Capital Partners in a deal reported to be valued at over $1.45 billion.

Shiseido said it was in talks to sell its “personal care” business in the first half of the year to CVC but that no decision had been made.

The business includes its Tsubaki shampoo and Sea Breeze deodorant brands which are sold at drugstores and convenience stores throughout Asia.

The talks were first reported by Bloomberg News, which put the value of the deal at between 150 billion to 200 billion yen ($1.45 billion-$1.93 billion).

Shiseido said it was considering taking a stake in the business and remaining involved in its development.

The talks come as Shiseido has been eyeing possible asset sales to focus on premium cosmetics, including its namesake line and brands such as Cle de Peau and Nars sold at department store counters.

Global private-equity firms such as CVC and Carlyle Group have recently been looking to expand in Japan, taking advantage of large Japanese companies coming under pressure to sell non-core assets and improve returns to shareholders.

CVC last year raised $4.5 billion for its fifth Asia Pacific fund.

Like other companies in the luxury sector, Shiseido was hit hard by the coronavirus as people shopped less and wore less make-up. A halt in tourism has been particularly painful as the company depended heavily on Chinese visitors.

The company said in November that it expects a net loss of 30 billion yen last year, worse than a previous forecast loss of 22 billion yen.

Shiseido shares rose 4 per cent in morning trade on the Tokyo Stock Exchange. A CVC representative declined to comment.

• Reporting by Ritsuko Ando and Makiko Yamazaki; Editing by Chris Gallagher, Richard Pullin and Ana Nicolaci da Costa, of Reuters.