Fo­sun sig­nals IPO of its health­care as­sets

China Daily (Canada) - - BUSINESS - By BLOOMBERG

Fo­sun In­ter­na­tional Ltd, the flag­ship of the Chi­nese con­glom­er­ate that owns Club Mediter­ra­nee SA, sig­naled the com­pany will an­nounce in­for­ma­tion re­lated to ini­tial public of­fer­ings of its health­care as­sets be­fore the end of the year.

News about the mat­ter and pri­vate-eq­uity in­vest­ments in health­care as­sets should come out dur­ing the sec­ond half of the year, group Chair­man Guo Guangchang said at a brief­ing on Wed­nes­day in Hong Kong.

The con­glom­er­ate is par­ent to Shang­hai Fo­sun Phar­ma­ceu­ti­cal Group Ltd, which trades in Hong Kong and the Chi­nese main­land.

Fo­sun is ac­cel­er­at­ing steps to im­prove its bal­ance sheet, it said in an earn­ings state­men­tonTues­day, as it seeks to raise its junk credit rat­ing to in­vest­ment grade. The com­pany re­ported a 21 per­cent in­crease in net in­come, as profit more than dou­bled at its in­vest­ment busi­nesses and in­dus­trial op­er­a­tions, off­set­ting a de­cline in earn­ings from in­sur­ance.

“Whether it is an IPO or pri­vate eq­uity in the health sec­tor, you will see us make some ac­com­plish­ments in the sec­ond half,” Guo said. “Fo­sun Group has never stopped push­ing for the IPO of sub­sidiaries to en­hance our liq­uid­ity.”

Phar­ma­ceu­ti­cal and health busi­nesses contributed about 29 per­cent of net in­come last year, the most af­ter in­vest­ments, which contributed about 38 per­cent. Fo­sun Phar­ma­ceu­ti­cal in July agreed to buy an 86 per­cent stake in Hy­der­abad, In­dia-based Gland Pharma Ltd for as much as $1.26 bil­lion, ad­ding in­jectable drugs to its prod­uct range­an­d­ex­pandin­gits global reach. It is pur­chas­ing the stake from KKR Floor­line In­vest­ments Pte.

Bil­lion­aire Guo has said he’s mod­el­ing Fo­sun on Berk­shire Hath­away Inc’s in­sur­ance plus in­vest­ment strat­egy.

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