The Logic Behind Fosun’s “Weight-loss” Actions: To Focus on the Core Businesses and Deepen Innovation and Globalization
HONG KONG, Nov 16, 2022 - (ACN Newswire via SEAPRWire.com) - Over the past few months, successive "Weight-loss" actions by Fosun International (HKEX: 00656) have come under the spotlight in the capital market.On the evening of 6 November 2022, Yuyuan Inc., a subsidiary of Fosun International, announced its proposal to transfer 654 million shares, or a 20% equity stake, in Zhaojin Mining Industry Co., Ltd. ("Zhaojin Mining") to Jinshan (Hong Kong) International Mining Co., Ltd., a wholly owned subsidiary of Zijin Mining for a total consideration of HK$4.395 billion. In addition to Yuyuan Inc.'s previous stake reduction in Zhaojin Mining on the secondary market in September 2022, Yuyuan Inc.'s shareholding in Zhaojin Mining would be declined to 1.26%. On 19 October 2022, Fosun proposed to transfer 60% of the equity of Nanjing Iron & Steel United Co., Ltd. ("Nanjing Nangang") to Shagang Group at a total consideration of no more than RMB16 billion.Gearing up for Strategic TransformationAfter its investment in both Nanjing Nangang and Zhaojin Mining for a long period of time, the successive proposed disposals of its equity stakes in the two companies are expected to generate a total...
