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Fosun Pharma Plans HK$1 Billion Share Buyback Funded by Gland Pharma Stake Sale

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Fosun Pharma Plans HK$1 Billion Share Buyback Funded by Gland Pharma Stake Sale

Shanghai Fosun Pharmaceutical (HKG:2196, SHA:600196) plans to repurchase up to HK$1 billion of its H-shares over a 12-month period.

The plan, which the Chinese pharmaceutical firm said was designed to address market concerns and bolster shareholder value, will be funded by a divestment in its Indian unit.

Fosun's indirect subsidiary, Fosun Pharma Singapore, sold 9.897 million shares in Gland Pharma (NSE:GLAND, BOM:543245) for about 28 billion Indian rupees. The sale was executed through block trades and open-market transactions at an average price of 2,828.78 rupees each, representing a 2.72% discount to the previous close.

The sale reduces Fosun International's equity stake in Gland Pharma to 45.76% from 51.76%. Gland Pharma will remain a subsidiary of Fosun Pharma and its financial results will continue to be consolidated under Fosun's umbrella.

The share buyback follows an upbeat first half for Fosun Pharma. Attributable net profit jumped 19.1% year over year to 1.14 billion yuan on the back of a 4.75% increase in revenue to 20.4 billion yuan.

"Looking ahead, Fosun Pharma will stay focused on innovation and globalization, accelerating the R&D progress and commercialization of its major pipeline candidates," the company said.

Fosun Pharma's shares jumped more than 7% in Hong Kong and over 1% in Shanghai in recent trade.

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