By Tracy Qu


Shanghai Henlius Biotech shares rose after it agreed to a buyout offer by Chinese conglomerate Fosun International in a deal valuing the Hong Kong-listed drugmaker at US$1.7 billion.

Shares of Henlius were 19% higher at 22.40 Hong Kong dollars by midday Tuesday, taking gains this year to 61%. Fosun International shares added 0.2%, while the benchmark Hang Seng Index was 0.45% higher.

Fosun International, one of China's biggest listed conglomerates, said late Monday that it will offer HK$24.60 for each Henlius share through its unit Shanghai Fosun Pharmaceutical, Henlius's controlling shareholder. The offer represents a 31% premium to Henlius's closing price on May 22 before the company halted trading pending takeover and merger-related news.

The deal values Henlius at about HK$13.37 billion (US$1.71 billion). Fosun, which said it plans to merge Henlius with Shanghai Fosun Pharmaceutical, said the drugmaker's listing status "no longer provides meaningful access to capital," adding that "unsatisfactory share performance" distracted the company from its business operations.

Henlius shares are trading at less than half the company's initial public offering level in 2019.


Write to Tracy Qu at tracy.qu@wsj.com


(END) Dow Jones Newswires

06-25-24 0047ET