China conglomerate Fosun plans sale of US$527 million Tsingtao stake

HONG KONG: Chinese conglomerate Fosun International said on Tuesday (May 31) it has agreed to sell all its 4.89 per cent stake in Tsingtao Brewery through share placement, raising HK$4.14 billion (US$527.47 million) for general working capital.

Fosun's subsidiaries Fosun Industrial, Fidelidade Companhia de Seguros SA, and a unit of China Momentum Fund LP, which is a fund managed by the group as a general partner, are selling a total of 66.78 million H shares of Tsingtao at HK$62 apiece, a 4.7 per cent discount to Monday's close of HK$65.05.

The deal includes sale of 47.59 million H shares, or 3.49 per cent of Tsingtao, held by Fosun Industrial.

Fosun and China Momentum Fund will no longer hold any H shares in Tsingtao on completion of the deal, and the disposal is a normal withdrawal of investment arrangements, the Chinese conglomerate said in a filing to the Hong Kong bourse.

UBS is the placing agent.