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Fosun International to sell stakes in four companies for US$975 million
- Shanghai-based conglomerate has been selling some assets as it faced questions about its financial strength
- Heavily indebted Fosun International said it would use proceeds to bolster its general working capital
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Chad Brayin London
Chinese conglomerate Fosun International has agreed to sell its stakes in four companies for a combined 6.7 billion yuan (US$975 million) in the latest series of asset sales by the owner of the Club Med chain of resorts.
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The Shanghai-based conglomerate said it would sell a 25.7 per cent interest in Tianjin Jianlong Iron & Steel Industrial and 26.7 per cent stakes in Beijing Northern Jianlong Industrial, Jianlong Steel and Janeboat Holdings.
Heavily indebted Fosun said it would use the proceeds from the sales to bolster its general working capital.
“The disposals will enable the group to focus more resources on key development strategies and key projects and contribute to the long-term success of the group,” the company said in a Hong Kong stock exchange filing on Thursday. “It also demonstrates the group’s continuous efforts and focus on enhancing its overall competitiveness and creating maximum value for its shareholders.”
Fosun raised almost US$100 million last year through the sale of assets as it has faced ongoing concerns over its financial strength.
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Among its sales included holdings in Shanghai-listed retailer Shanghai Yuyuan Tourist Mart, New China Life Insurance, Shanghai-listed Nanjing Iron & Steel and Zhaojin Mining Industry.
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