Joincare Pharmaceutical Group Industry (SHA:600380) plans to divest its entire 49% stake in its animal health subsidiary for 51.5 million yuan to focus on its core business areas.

The Chinese pharmaceutical company will sell the stake in Maohaizi Animal Health (Guangdong) to its related party, Shenzhen Xinyou Maohai Investment Partnership (Limited Partnership).

Post-transaction, Xinyou Maohai will hold 52.6% of Maohaizi's equity, while Joincare's controlling shareholder, Livzon Pharmaceutical Group Co., the parent company of Livzon Pharmaceutical Group Inc. (HKG:1513, SHE:000513), will hold the remaining 47.4% stake.

Joincare Pharmaceutical will no longer directly hold any stake in the animal health company following the transaction.

The company cited the "weak synergy" between Maohaizi's main business and the company's strategy as the reason for the divestment.