Shanghai Fosun Pharmaceutical (Group) Co., Ltd (SHA: 600196) announced that its controlling shareholder, Shanghai Fosun High Technology (Group) Co., Ltd—a subsidiary of Fosun International—is set to sell a holding of 80 million shares, or a 3% stake, in the firm. The sale is expected to bring in RMB 3.22 billion (USD 461 million) in cash, marking the first time Fosun High Tech has carried out such a sale since its listing in 1998.
Operational Reasons Cited for Sale
Fosun High Tech stated that the sale is due to “operational reasons.” The transaction comes at a challenging time for Fosun Pharma, as its stock price has fallen by nearly 60% over the past year, with the company’s market capitalization dropping by around RMB 140 billion (USD 20.1 billion).-Fineline Info & Tech
