Bright Health Up Over 12% On Business Sale Deal With Molina Healthcare

(RTTNews) - Shares of Bright Health Group, Inc. (BHG) were trading up over 12 percent on Friday morning after the company announced a deal with Molina Healthcare, Inc. (MOH) to sell its California Medicare Advantage business, Brand New Day and Central Health Plan, for $600 million.

BHG was trading up by 12.41 percent at $12.27 per share on the New York Stock Exchange.

The Group noted that it aims to use the proceeds from the transaction to meet its obligations to its lenders with the remaining proceeds towards liabilities in its discontinued ACA insurance business.

Yesterday BHG had closed down by 1 percent at $10.92 per share on the NYSE.