Fosun wins takeover battle for Portuguese healthcare provider

Fosun International has won a takeover battle for Portuguese health care service provider Espirito Santo Saude, seeing off bid rivals from at least three countries to land a €459.83 million (HK$4.5 billion) deal as part of the firm's global buying spree.

The mainland's biggest privately owned conglomerate said yesterday that its subsidiary, Portuguese insurer Fidelidade-Companhia de Seguros, had won the bid for a 96.07 per cent stake in Espirito Santo Saude after it raised the offer to €5.01 a share.

The Shanghai-based firm is hunting acquisition opportunities worldwide, with particular interest in the insurance sector. Its shopping spree has aroused concerns by ratings agencies about rising debt. Its cash doubled to 33 billion yuan (HK$41.7 billion) in the six months to June, but total debt rose 26.7 per cent to 87.53 billion yuan.

In its latest deal, Fosun outbid rivals including Portuguese health care services group Jose de Mello Saude, Grupo Angeles of Mexico and UnitedHealth Group of the United States.

Shares of Espirito Santo Saude were trading up 6.4 per cent at €4.814 early yesterday, while Fosun ended down 3.36 per cent at HK$8.64.

Espirito Santo Saude owns one of Lisbon's largest private hospitals, Hospital da Luz, along with seven other hospitals, seven clinics and two senior care institutions. It also manages a public hospital. The company had revenue of €374 million last year.