Fosun to Raise $1.5 Billion to Finance Acquisitions

HONG KONG — Fosun International, the Chinese conglomerate, said on Friday that it planned to raise up to 11.7 billion Hong Kong dollars, or $1.5 billion, by issuing rights shares to pay for deals in the banking and insurance industry.

The investment company, which is listed in Hong Kong and controlled by the Chinese billionaire Guo Guangchang, said it would issue up to 871.32 million shares at 13.42 Hong Kong dollars, or $1.73, a share.

It had already raised 9.24 billion dollars in May through a share placement. About 4.79 billion dollars went toward investment and spending on acquisitions in the insurance industry.

“In order to be able to grasp business opportunities as they arise and actively develop its insurance-oriented comprehensive financial capability, the company wishes to optimize its capital structure,” it said in a filing. Current shareholders will be able to buy 56 shares for every 500 that they already own.

Fosun has been on a spending spree in the finance and insurance sectors in recent years, as it tries to become an insurance-focused investment group. When the company bought assets from Caixa Seguros e Saúde of Portugal, Mr. Guo said the purchases were “a solid step for Fosun to evolve into Warren Buffett’s model.”

The group was reported to be in talks to take over Portugal’s Novo Banco, which was carved out of Banco Espírito Santo. It had already bought Fidelidade, Portugal’s largest insurer, and Espírito Santo Saúde, a Portuguese private hospital group. In May, it spent $1.84 billion on the 80 percent of the United States insurer Ironshore that it did not already own.

Fosun also has investments in other industries, including tourism and real estate. It bought Chase Manhattan Plaza in New York for $725 million in 2013. It closed its takeover of Club Méditerranée, based in France, this year, and its investment into Cirque du Soleil, the Canadian circus group, was recently approved.

SOURCE:  NYTIMES