China’s Fosun International sells stake in Belgian insurer Ageas to BNP Paribas to reduce debt, focus on core businesses
- The company, one of China’s largest private-sector firms, agreed to sell an 8.2 per cent stake in Ageas for about €670 million (US$714 million)
- More divestments to come, analyst says, as conglomerate aims to cut debts by US$1.38 billion annually in the next two to three years
A deal involving the sale of 15.4 million shares of Ageas was concluded on Friday, the Shanghai-based group said in a filing to the Hong Kong stock exchange.
“The disposal is part of the company’s efforts [towards] streamlining its portfolio and implementing a core business-focused strategy,” Fosun said in the filing published on Sunday evening. “It also demonstrates the group’s continuous determination on improving its financial performance and creating maximum value for its shareholders.”
Fosun, controlled by Chinese billionaire Guo Guangchang, will still hold 1.95 million shares, or 1 per cent, of the Belgian insurer after the transaction, the company added.
The divestment came just two weeks after Fosun pledged to hasten its exit from noncore businesses while focusing on assets that generate cash flow to improve its profitability.
