CVC Capital Partners Plc is considering a sale of its Chinese retail pharmacy chain Xi'an Yikang Pharmaceutical Co., according to people familiar with the matter. The London-based private equity firm has owned the chain for several years and may be looking to exit its investment as part of a broader portfolio review.

CVC Capital Partners acquired a controlling stake in Xi'an Yikang Pharmaceutical as part of its broader strategy to expand in China's healthcare sector. The pharmacy chain operates hundreds of stores across Shaanxi province and has grown significantly under CVC's ownership, benefiting from China's aging population and rising healthcare spending.

Potential buyers could include other private equity firms, strategic healthcare investors, or Chinese pharmaceutical companies seeking to expand their retail footprint. The sale process is said to be in early stages, with no final decision made and valuation discussions yet to begin. Advisors have not yet been formally appointed, though preliminary conversations with interested parties may have occurred.

CVC has been actively managing its portfolio amid changing market conditions in China. A sale of Yikang would represent a significant exit for the firm in the Chinese pharmaceutical retail space, potentially valuing the chain at several billion yuan. The move comes as global private equity firms reassess their China exposure amid regulatory uncertainty and economic headwinds.