Sino Biopharmaceutical to divest 67% stake in unit CP Qingdao for $253 million

(Reuters) - Hong Kong-listed Sino Biopharmaceutical will sell a 67% stake in unit CP Pharmaceutical (Qingdao) for 1.82 billion yuan ($253.28 million) to entities controlled by state-owned Guoxin Group, the company said late on Tuesday.

Sino Biopharmaceutical will keep a 26% stake in CP Qingdao after the disposal, the pharmaceutical conglomerate said in a filing to the Hong Kong Stock Exchange.

CP Qingdao, established in China, is mainly involved in research and development, production and sale of osteoporosis medicines and marine pharmaceuticals.

Through the deal, Guoxin Group plans to enter the life and health industry characterised with marine biological pharmaceuticals, Sino Biopharmaceutical said.

The company expects to record a gain of about 1.60 billion yuan on the disposal, subject to audit.

($1 = 7.1858 Chinese yuan)

(Reporting by Himanshi Akhand in Bengaluru; Editing by Subhranshu Sahu)