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Chinese conglomerate Fosun International is considering selling stake in Hong Kong-based Peak Reinsurance Company as the company looks to pay off debt by selling assets.
Fosun is working with a financial adviser to consider options including a potential sale of its majority stake or a minority interest in the reinsurer, reported Bloomberg News. Such a transaction could value Peak Re at $500 million to $1 billion, it added.
The potential deal came after the conglomerates told analysts that it’s targeting to sell as much as $11 billion of assets within the next 12 months.
Fosun International Ltd.’s management said during a Monday briefing it plans to dispose of 50 billion to 80 billion yuan of non-core assets as it works to focus on its consumer-discretionary business, according to a note of Citigroup Inc. The conglomerate considers its core assets to be its listed pharmaceutical, retail and tourism arms as well as insurer Fidelidade, according to the bank.
It said Fosun considered its listed pharmaceutical, retail and tourism businesses, as well as Fidelidade, as core assets.
The company said on Wednesday that its 30% stake in Portugal’s largest listed bank Millennium bcp is not for sale after reports that it could sell assets in the country to cut its debt.
Credit rating agency Moody’s downgraded Fosun by one notch to B2 from B1 on Tuesday and revised its outlook to “negative” amid concerns over the firm’s accelerated asset sales. Read more …
Earlier, Fosun International said that three of its units will sell a combined 60% stake in Nanjing Nangang Iron & Steel United for up to 16 billion yuan ($2.21 billion) to steelmaker Jiangsu Shagang Group. Read more …