Bausch + Lomb (BLCO) shares popped Monday following a report that the eyecare company is considering a sale.

The contact lens producer is working with Goldman Sachs (GS) on a deal that would see it separated from its severely indebted parent Bausch Health Cos. (BHC), the Financial Times reported Saturday. Bausch + Lomb was spun off from Bausch Health in 2022.

Bausch♛ + Lomb’s enterprise value including debt was at just over $10 billion as of the market close Friday, the report said.

Bausch Health Would Need to Pass Solvency Test Before Divestment 😼Can Be Approved

Bausch Health has $21 billion in debt following a string of takeovers, w♏ith $10 billion coming due by the end of 2027, the report added.

However, since Bausch + Lomb is a key revenue-generating subsidiary, the parent firm would have to pass a solvency test before a sale of the cont๊act lens producer can be approved.

In July, Bausch Health pushed back against a research firm's report saying it was 澳洲幸运5官方开奖结果体彩网:mulling bankruptcy options.

Shares of Bausch + Lomb rose nearly 14% intraday Monday, and Bausch Health stock climbed 6%.