Fosun Group

Fosun bid for equity fund of 1.5b yuan

PUBLISHED : Thursday, 15 December, 2011, 12:00am
UPDATED : Thursday, 15 December, 2011, 12:00am


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Shanghai-based conglomerate Fosun International said yesterday it planned to form a 1.5 billion yuan (HK$1.8 billion) fund focusing on equity and debt investments.

The Hong Kong-listed company announced its subsidiaries, Nanjing Iron & Steel, Tibet Fosun and Fosun Pingyao, entered into a limited partnership agreement with Tibet Xingye and other investors last month.

The companies agreed to form a fund, Shanghai Fosun Chuanghong Equity Investment Fund Partnership, in Shanghai to make equity and debt investments in industries other than property, pharmaceuticals, steel and mining.

Nanjing Iron & Steel will contribute 100 million yuan, while Tibet Fosun and Fosun Pingyao will contribute 15 million yuan and 40 million yuan respectively.

Tibet Xingye, controlled by Fosun International chairman Guo Gaungchang, will contribute 470 million yuan. It represents approximately 31.23 per cent of the total capital of the fund. The capital contributions will be paid within three years in three phases.

Tibet Fosun will be responsible for the operation and management of the fund. The partnership of the fund is for eight years and the operation period is five years.

Since the subsidiaries of Fosun International are involved in pharmaceuticals and healthcare, as well as the property, steel and mining industries, the fund will invest in other industries.

Fosun International's net profit jumped 110.9 per cent to 3.4 billion yuan in the first half from a year earlier. The company's revenues climbed 23.6 per cent to 25.55 billion yuan from 20.67 billion yuan.

As of June 30, net assets attributable to the owners of the parent of Fosun International and its subsidiaries reached 32.25 billion yuan, representing an increase of 8 per cent over the end of last year.