On September 29, 2021 HUTCHMED (China) Limited ("HUTCHMED") (Nasdaq/AIM: HCM; HKEX:13) reported that, further to its announcement in March 2021 and following receipt of regulatory approval, it has completed the sale of its entire indirect interest in Hutchison Whampoa Guangzhou Baiyunshan Chinese Medicine Company Limited ("HBYS"), a non-core and non-consolidated over-the-counter ("OTC") drug joint venture business, to GL Mountrose Investment Two Limited, a company controlled and managed by GL Capital Group ("GL Capital") (Press release, Hutchison China MediTech, SEP 29, 2021, View Source [SID1234590546]).

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The aggregate amount which will be received by HUTCHMED is approximately US$169 million in cash, representing about 22 times HBYS’ adjusted net profit attributable to HUTCHMED equity holders of US$7.7 million in 20201. Of the proceeds, approximately US$127 million related to its shareholding in HBYS has been received. The balance of approximately US$42 million is related to expected upcoming distributions of declared dividends related to previously announced land compensation and prior year undistributed profits.

The transaction will allow HUTCHMED to focus the organization and resources on its primary aim of accelerating investment in the Oncology/Immunology assets in China and beyond.