Fosun Pharmaceutical Group has agreed to sell its entire stake in United Family Healthcare to Calcite Gem Investments Group for $124.1m.
The decision, approved by Fosun Pharma’s board of directors, entails the transfer of 9.4 million shares at $13.2 each.
Go deeper with GlobalData
United Family Healthcare, a company in high-end private medical services in China, operates a network of hospitals and clinics through New Frontier Health, its holding subsidiary.
Fosun Pharma’s involvement with United Family began in 2009 with an 11.18% share acquisition from Chindex International on the US stock market via its subsidiary Fuxing Industrial, as reported by iMedia.
The strategy behind the sale aligns with Fosun Pharma’s shift in focus towards its core business, moving away from a high-growth model that relied heavily on investment.
The disposal of non-core assets is part of a broader initiative to streamline operations and concentrate on primary business activities.
This transaction is expected to bolster Fosun Pharma’s financial position, with plans to allocate the proceeds towards enhancing working capital and repaying debts.
It marks a further step in the company’s strategy to expedite the divestment and consolidation of assets deemed non-essential to its strategic goals.
Additionally, Fosun Pharma has disclosed intentions for Fuxing Industrial to offload a 6.6% equity interest in Unicorn II Holdings to Calcite Gem.
The sale of United Family Healthcare is projected to yield an unaudited after-tax income of approximately CNY650m ($89.7m) for Fosun Pharma, as reported by Yicai Global, citing a Shanghai-based firm.
There are more than 600 full-time doctors working in United Family Healthcare.
