News: UPDATE 1-Ansell sells condom division to Chinese consortium for $600 mln

(Adds details of sales process, chairman comment)

SYDNEY, May 25 (Reuters) - Rubber products maker Ansell Ltd (ANN) said on Thursday it would sell its condom business to a Chinese consortium for $600 million, leading the Australian company to launch a $265 million on-market share buyback.

China's Humanwell Healthcare Group Co Ltd <600079.SS> and CITIC Capital China Partners have bought the division, which also includes a lubricant and devices business, Ansell said.

"We are delighted with this outcome, following a thorough and competitive process, which realises significant value for Ansell shareholders," Ansell Chief Executive Magnus Nicolin said in a statement.

Ansell in February said several parties had expressed interest in the division, which sent its shares soaring at the time.

The company expects to receive net after-tax proceeds of $529 million from the sale. The share buyback announced on Thursday represents 10 percent of shares on issue.

Chairman Glenn Barnes said Ansell, whose main business is making gloves for factories and medical applications, would also consider making value accretive acquisitions that could generate attractive returns.