HUTCHMED (China), controlled by tycoon Li Ka-shing, is selling stakes in its health subsidiary for around US$608 million as the billionaire and his flagship conglomerate look to ramp up capital and pivot towards core operations at the drugmaker.
Hutchmed will sell a total 45 per cent stake in Shanghai Hutchison Pharmaceuticals to Chinese firms GP Health Service Capital and Shanghai Pharmaceuticals, a stock exchange filing showed on Wednesday.
Hutchmed‘s largest shareholder is Hong Kong-listed conglomerate CK Hutchison, in which the billionaire investor has a 28.1 per cent stake.
The biopharmaceutical company has struggled with issues pertaining to debt and high onshore liability levels in the recent past and the potential deal would further help the firm “optimise capital and debt structure,” it said.
The billionaire family’s flagship firms, which has interests in real estate, retailing and utilities around the globe, also reported a dip in earnings during August, reflecting the rise of trade and geopolitical tensions.
Hutchmed anticipates to report a profit of US$477 million before income tax from the transaction, while the amount would be re-fed into the firm for development of core operations. REUTERS
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