Hutchmed, controlled by the Li Ka-shing family, is currently in the process of selling shares of its medical subsidiary for approximately 608 million US dollars. Li Ka-shing and his flagship conglomerate aim to raise capital and shift focus towards their core pharmaceutical business.
According to a report by Reuters, a document filed with the stock exchange on Wednesday, January 1st, revealed that Hutchmed will be selling a total of 45% of shares in Shanghai Hutchison Pharmaceuticals to Chinese companies GP Health Service Capital and Shanghai Pharmaceuticals.
The largest shareholder of Hutchison Whampoa is Li Ka-shing’s flagship conglomerate, CK Hutchison Holdings Limited, which holds 28.1% of the company’s shares.
The report states that the biopharmaceutical company has been working diligently to address issues related to debt and high levels of onshore liabilities. The company stated that this potential transaction would further assist in “optimizing capital and debt structure.”
Li Ka-shing’s family flagship company has global operations in real estate, retail, utilities, and other sectors, with a noticeable drop in earnings in August, highlighting escalating trade tensions and geopolitical uncertainties.
Bloomberg reported that Hutchmed stated in a release that this transaction is expected to generate approximately 477 million US dollars in pre-tax income, which will be used to advance their core business, including targeted therapies for treating cancer and immune disorders.