In key news on Hong Kong stocks, Shanghai Henlius Biotech Inc. (HK:2696) shares surged after the company agreed to a buyout offer from Fosun Pharma, part of Fosun International Limited (HK:0656). Fosun Pharma will acquire the remaining stake in Shanghai Henlius that it does not already own in a transaction valued at HK$13.37 billion. Under the deal, Fosun will pay HK$24.60 per share, which is 31% above the closing price on May 22, after which the company halted trading, awaiting takeover and merger-related announcements.
Following the announcement, Shanghai Henlius shares gained nearly 20%, as of writing. Meanwhile, Fosun International stock was down 1.16%.
Shanghai Henlius Biotech is a biopharmaceutical company with a solid pipeline of clinical-phase cancer and autoimmune drugs. It operates as a subsidiary of Shanghai Fosun Pharmaceutical, owned by Fosun International, a Chinese conglomerate focused on various sectors.
