South Korean conglomerate SK Group is in advanced talks with several potential buyers regarding its majority stake in Vietnam-based pharmaceutical unit Imexpharm [HOSE:IMP], according to four sources familiar with the situation.

The first three sources said the conglomerate has engaged UBS to advise on the sale. SK engaged a financial advisor last year to assist on the potential sale of its 65% stake in Imexpharm, according to a newswire report.

According to a company spokesperson, SK has been weighing strategic options to rebalance its business portfolios globally but has no information to share regarding Imexpharm at this stage. The strategic options may also not necessarily lead to a divestment, he added.

An Indonesian pharma company and a private equity firm are among the bidders, the first source said.

According to the fourth source, the vendor has been offering its stake at a valuation of more than USD 300m. It means that SK Group could sell Imexpharm at a premium of 10% to 20% over the market price.

Based on Imexpharm’s current market capitalization of VND 7.2trn (USD 282m), SK Group’s stake is valued at around USD 183m.

As of end-2024, SK Group holds an approximate 65% stake in Imexpharm through its Singapore-based investment arm SK Investment Vina III and two Vietnamese entities, Sunrise Kim and KBA Investment, as disclosed in Imexpharm’s financial statements.

Imexpharm and UBS did not respond to requests for comment.

To diversify its product portfolio and scale up export activities, the drug manufacturer will expand its production capacity this year to meet EU-GMP standards. It also plans to build the VND 1.5trn Cat Khanh pharmaceutical factory complex, which has a capacity of 1.4 billion product units in the southern Dong Thap province. It aims to start construction for the project by 3Q25, as announced last year.

Imexpharm plans to fund the project by divesting its assets, including minority stakes in two local pharmaceutical companies Vidipha Central [HOSE:VDP] and No 25 Central [UPCoM:UPH]. In addition, it is also offering its stake in affiliate company Mephydica to the latter’s major shareholders. These plans would be implemented in 2025, as disclosed by Imexpharm last year.

Imexpharm clocked net revenue of VND 2.2trn and net profit of VND 321bn in 2024, up 11% and 7% YoY, respectively.