A merger agreement between Shanghai Henlius Biotech (HKG:2696) and Shanghai Fosun Pharmaceutical (Group) (SHA:600196, HKG:2196) has been terminated, a Wednesday Hong Kong bourse filing said.

Under the contract signed in June 2024, Fosun Pharma had agreed to acquire the shares it didn't already own in Henlius Biotech.

While the special resolution regarding the proposal was approved by the requisite majority at the firm's extraordinary general meeting, it was rejected at the H shareholders' class meeting.

Despite the deal falling through, Shanghai Fosun Pharmaceutical, which holds a 59.56% stake in Shanghai Henlius Biotech, will retain its controlling position in the latter.

Shares of Fosun Pharma were up over 1% in Hong Kong in recent trade, while Henlius Biotech fell over 4%.