(Yicai) March 14 -- Chinese drugmaker Fosun Pharmaceutical Group will sell United Family Healthcare to Calcite Gem Investments Group, an investment holding company owned by US private equity firm Warburg Pincus, for USD124.1 million.

Fosun Pharma’s board of directors approved the sale of the company’s whole 9.4 million shares of United Family Healthcare for USD13.20 apiece to Calcite Gem, the Shanghai-based firm announced yesterday.

United Family Healthcare is one of the earlier high-end private medical institutions in China. Its main assets are United Family hospitals and clinics operated by its holding subsidiary New Frontier Health. Fosun Pharma first invested in the company in 2009.

The move will help Fosun Pharma further focus on its core business, the firm noted, adding that the proceeds from the sale will be used to replenish its working capital and repay interest-bearing debts.

The sale of United Family Healthcare is expected to contribute about CNY650 million (USD89.7 million) in unaudited after-tax income to Fosun Pharma, the company predicted.

Shares of Fosun Pharma [SHA: 600196] were trading up 0.6 percent at CNY24.68 (USD3.40) as of 10.30 a.m. in Shanghai today. The company’s Hong Kong-listed stock [HKG: 2196] rose 1.5 percent to HKD15.12 (USD1.94).

Editor: Futura Costaglione