(Yicai) June 20 -- China's Fosun Pharmaceutical Group intends to pare its controlling stake in Gland Pharma, an Indian maker of injectables, by 6 percent for about INR17.5 billion (USD210 million) to improve its financial stance.

Fosun Pharma will reduce its shareholding ratio in Gland Pharma to 51.8 percent from 57.5 percent via block trades to replenish the company’s working capital and to repay interest-bearing debts, the Shanghai-based drugmaker announced yesterday.

The price will be INR1,771.81 (USD21) per share, a nearly 4 percent discount to Gland Pharma’s closing price on June 18. Most of the buyers are investment funds focusing on long-term returns, the seller said, without disclosing the names of the buyers.

Fosun Pharma has been the biggest shareholder of the Indian maker of vials, ampoules, and pre-filled syringes for years as the Chinese company said in July 2016 that it would offer up to USD1.3 billion to acquire an 86.1 percent stake in the target firm.

Hyderabad-headquartered Gland Pharma is the first Indian manufacturer of injectables to gain approval from the Food and Drug Administration of the United States. It earns most of its revenue from the US and Europe. In November 2020, Gland Pharma completed spin-off listings on the main boards of the Bombay Stock Exchange and the National Stock Exchange of India, collectively raising about INR64.8 billion (USD775.8 million).

This marks the latest effort of Fosun Pharma’s parent Fosun International to streamline its asset portfolio to mitigate liquidity pressures after years of aggressive expansion overseas. The pace of unloading is accelerating as Fosun International said last month that it would sell all of its shares in Hauck Aufhäuser Lampe, a German private bank, to Dutch lender ABN AMRO for EUR672 million (USD721.3 million).

Investor sentiment was lukewarm as Fosun Pharma [SHA: 600196] closed 0.6 percent lower at CNY22.50 (USD3.10) in Shanghai today while its Hong Kong-traded shares [HKG: 2196] closed up 1.2 percent higher at HKD13.40 (USD1.72) today.

Editor: Emmi Laine