Tuesday, May 13, 2014

Bank of China ICBC For Portugal Fosun International Insurance underwriting acquisition financing

Hong Kong, April 15 Reuters - Thomson Reuters quoted sources reported that basis, the Bank of China and Industrial and Commercial Bank of China Shanghai Branch of China is a comprehensive enterprise with Fosun International to discuss matters relating to the loan underwriting loans to support Fosun International to Portugal. State-owned banks - the acquisition of Portugal savings and credit bank (Caixa Geral de Depositos SA)'s insurance department.

A source said that the loan size of about 500 million euros ($ 690 million). According to sources, the loan period will be more than five years but less than 10 years.

According to a stock exchange files, Fosun signed an agreement on February 7, will spend € 1 billion acquisition of the Portuguese branch of insurance savings and credit bank Caixa Seguros e Saude, SGPS, SA's 80 percent stake. Purchaser is an indirect wholly-owned Fosun subsidiary Millennium Gain Ltd, has paid 100 million euros as an advance, the remaining amount will be settled after the completion of the acquisition(http://www.wantinews.com/).

According to documents, Portugal's largest insurance group, including three branches Fidelidade, Multicare and Cares, upon completion of the transaction become a subsidiary of Fosun, still mainly engaged in the insurance business in Portugal.

Fosun April 9 announced plans rights issue to raise HK $ 48.6-51.6 million (6.27-6.65 billion U.S(Finance Newshttp://www.wantinews.com/). dollars) on Monday, Moody's said it would continue to Fosun's credit rating may be lowered into the list of the re-evaluation of the column.

And senior vice president of Moody's analyst Lina Choi said, 'If the rights issue is expected to be completed in accordance with the recent funding pressures ease Fosun.'

Moody was originally released in the January 13 Fosun announced the re-evaluation of Portugal acquisitions advice, financing plans, said Fosun uncertainty, and there are trade execution risk.

But Fosun assured investors that the hands have enough cash for the acquisition of our own balance sheet is fully capable to pay. Nevertheless, we will consider various possible (financing) channels, 'vice chairman and chief Fosun International CEO Liang Xinjun said in an interview with Reuters, he said, adding that in 2013 Fosun made good gains, it also helps to strengthen the company's own balance sheet, lay a good foundation for overseas acquisitions.

Fosun 2013 revenues of 50.017 billion yuan ($ 8.04 billion), down 1.4% from the previous year. Gross profit increased 11% to 10.358 billion yuan.

Headquartered in Shanghai Fosun territory aggressively expand globally through acquisitions in overseas assets. Fosun currently jointly bid for the French private equity firm Ardian resort operator Club Mediterranee. Last year, Fosun invested $ 725 million from JP Morgan Chase in the hands of Chase Manhattan Plaza, New York, purchased the first.