Industrial conglomerate CK Hutchison Holdings Ltd. is planning to reduce its stake in Hutchison China MediTech Ltd. to below 50% by selling about 1.3% of the total outstanding shares of the biopharmaceutical company in a public offering.
Hong Kong-based CK Hutchison plans to reduce its stake to 49.9% from 51.1% and maintain its shareholding in the cancer therapy developer Chi-Med as a strategic investment. CK Hutchison priced the shares, which are being sold through an underwritten public offering, at $17.65 per American depositary share, which represent five ordinary shares with a value of 10 cents.
In April, CK Hutchison said it intends to cut its stake to below 50% to improve liquidity in Chi-Med's shares and that the business would no longer be a consolidated unit in its financial statements.
CK Hutchison said in a Sept. 30 press release that upon completion of the underwritten offering, it has no intention of selling additional Chi-Med shares for the foreseeable future.
