22 March 2019

Fosun eyes US$668 mln from rights issue

Fosun International Ltd. (00656.HK) aims to raise up to US$668 million in a rights issue as it turns to its shareholders for funds, the Wall Street Journal reported Thursday.

The offering comes after a string of foreign purchases by Fosun, including its US$725 million acquisition of One Chase Manhattan Plaza in New York City, the newspaper said.

The company is offering 39 shares for every 500 shares held, at HK$9.76 (US$1.26) each. The rights-issue shares will account for 7.2 percent of the company’s expanded capital base and will not substantially dilute existing shares, analysts were quoted as saying.

Fosun’s acquisition drive over the last three years has raised its net gearing ratio to 86 percent at the end of 2013 from 60.5 percent a year earlier, the report said. The level is expected to fall to around 72 percent after the rights issue, Goldman Sachs Group Inc. was quoted as saying.

– Contact HKEJ at [email protected]





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