Shanghai Fosun Pharmaceutical (Group) Co., Ltd (SHA: 600196, HKG: 2196) has announced that its plan to take its subsidiary Shanghai Henlius Biotech Inc. (HKG: 2696) private has fallen through after the shareholder vote did not pass in accordance with the terms. As a result, the listing of Henlius’ H Shares on the Main Board of the Stock Exchange will be maintained.
Background on the Privatization Plan
Fosun originally proposed to buy the remaining Henlius shares that it did not already own for HKD 5.4 billion (USD 693 million) last year, which would have increased its stake in Henlius to between 92% and 100%. This move aimed to consolidate control over the subsidiary and enhance strategic integration within the Fosun group.
Future Actions by Fosun
Despite the failed privatization attempt, Fosun Pharma, which currently holds a 59.56% stake in Henlius, plans to repurchase the company’s A Shares for RMB 300-600 million. Additionally, Fosun intends to repurchase no more than 5% of Henlius’ H Shares. These actions reflect Fosun’s ongoing commitment to optimizing its equity holdings in Henlius while maintaining the company’s public listing.-Fineline Info & Tech
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