Fosun Pharma to spin-off and list Sisram Medical in Hong Kong
Shanghai Fosun Pharmaceutical Group shares rose after it announced it would spin off and list its subsidiary Sisram Medical on the main board of the Hong Kong bourse.
Shares of Fosun Pharma rose 1.52 per cent to HK$18.72 in early trade Thursday morning after releasing the announcement Wednesday night. Its A shares in Shanghai gained 0.11 per cent to 18.85 yuan.
Fosun Pharma has a 66.2 per cent shareholding interest in the Israeli company which engages in the design, development, production and sale of medical aesthetics devices.
The spin-off and overseas listing of Sisram has been approved by the board, but is pending approval of Fosun’s shareholders, China’s securities regulator and the Hong Kong Stock Exchange, Fosun said in its statement. It did not disclose the fundraising target.
Net proceeds from the listing will be used for research and development of new products, market expansion and brand promotion, repayment of loans, merger and acquisition deals, and replenishment of Sisram’s working capital, Fosun Pharm said.
“The overseas listing of Sisram will have no material impact on the sustainable operation of other business segments of Fosun… It will firmly facilitate the strategic upgrade of Fosun, further consolidate our core competitiveness and promote our sustainable development,” Fosun Pharma said.