Bausch & Lomb shares jump on spin-off sale hopes

Shares in Bausch & Lomb surged on Monday amid speculation that the North American contact lens and eye care products supplier is exploring a potential sale.

According to the Financial Times, Bausch & Lomb has hired advisers to test the waters with potential buyers as it looks to separate itself from its heavily indebted parent company.

The sale is expected to draw interest from private equity groups, the paper said.

Based on BLCO's market capitalisation on Friday, its enterprise value including debt was around $10bn, though any transaction will likely be at a significant premium.

Bausch Health, which kept an 88% stake in Bausch & Lomb after the latter's stock-market debut two years ago, holds debt of $21bn, half of which is due to mature by the end of 2027.

Bausch & Lomb shares were up 15% at $17.89 by 0937 in New York, while Bausch Health jumped 6% to $6.70.