Billionaire Guo Guangchang’s Fosun International Ltd. (656) plans to raise as much as HK$5.18 billion ($669 million) in a rights offering for refinancing and general corporate purposes after its stock surged this year.
The company will offer shareholders 39 new shares at HK$9.76 each for every 500 they hold, according to a Hong Kong stock exchange filing last night. The cost of the rights shares is the same as yesterday’s closing price.
Fosun, the investment arm of China’s biggest closely held industrial group, has risen 27 percent in Hong Kong trading this year, compared with a 2 percent decline in the city’s benchmark Hang Seng Index. The share sale may give Fosun, which has been on a buying spree, further funds for acquisitions.
Having considered various fundraising methods, the board decided that a “rights issue is the most appropriate means and in line with the interests of the shareholders and the company,” Fosun said in the statement.
Fosun has expressed interest in Forbes Media LLC, people with knowledge of the matter said in February. In January, the company agreed to buy 80 percent of the insurance unit of Portugal’s Caixa Geral de Depositos SA for 1 billion euros ($1.39 billion). In October, the conglomerate said it would buy New York’s 1 Chase Manhattan Plaza office building for $725 million.
Guo’s closely held Fosun Holdings Ltd., which owns 79 percent of Fosun International’s shares, will underwrite the rights offer, according to the filing. The company said it will sell as many as 531.1 million new shares.
Fosun International has gained 88 percent in the past 12 months against a 4.5 percent gain in the HSI.
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