China’s Fosun to sell 60% stake in Nanjing Nangang for nearly $2 billion

Fosun International Ltd will sell its 60 per cent stake in Nanjing Nangang Iron & Steel United Co Ltd to steel manufacturer Jiangsu Shagang Group for 13.58 billion yuan ($1.98 billion), the Chinese conglomerate said on Tuesday.

The divestment, which was first announced in October last year, will see Fosun disposing its stake in Nanjing Nangang, held via its subsidiaries, to realise a gain of 830 million yuan.

The remaining 40 per cent stake in Nanjing Nangang is held by Nanjing Iron & Steel Group.

Separately, Fosun announced that it will buy a near 30 per cent stake in Chinese chemicals producer Zhejiang Wansheng for 2.65 billion yuan.

In recent times, Fosun and its units have cut stakes in firms such as New China Life Insurance, Zhaojin Mining Industry Co and Shanghai Yuyuan Tourist Mart Group. Earlier this year, the company sold its stake in four separate firms for a combined 6.7 billion yuan.

($1 = 6.8715 Chinese yuan renminbi)

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