Billionaire Li Ka-shing’s Hutchmed in $608 mln health unit stake sales (updated)
01/01/2025 20:39
(Updates with deal details in paragraphs 2,3 and 6, company
background in paragraphs 4 and 5)
Jan 1 (Reuters) - Hutchmed (China) 0013.HK , controlled
by tycoon Li Ka-shing, is selling stakes in its health
subsidiary for around $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% stake in Shanghai
Hutchison Pharmaceuticals to Chinese firms GP Health Service
Capital and Shanghai Pharmaceuticals 601607.SS , a stock
exchange filing showed on Wednesday.
Hutchmed's largest shareholder is Hong Kong-listed
conglomerate CK Hutchison 0001.HK , in which the billionaire
investor has a 28.1% 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
"optimize 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 $477 million
before income tax from the transaction, while the amount would
be re-fed into the firm for development of core operations.
(Reporting by Kumar Tanishk in Bengaluru; Editing by Cynthia
Osterman and Alistair Bell)
((Tanishk.Kumar@thomsonreuters.com;))