Companies
Fosun to invest billions as it goes for global expansion
By Karen Yip (皇冠体育app Daily)
Updated: 2010-12-09 11:15
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Representatives of Fosun Pharma， United Family Healthcare and Huashan Hospital. Fosun has been aggressive in international investment, including buying stakes in United Family and Club Med.[Photo/皇冠体育app Daily] |
BEIJING - Dealmakers, brokers and bankers with black portfolios containing information on European companies or stakeholdings for sale are fervently knocking at the doors of Fosun, the largest privately owned conglomerate in 皇冠体育app.
This comes after Guo Guangchang, Fosun's chairman and one of 皇冠体育app's wealthiest people, said in Hamburg, Germany, at the end of November that he is eyeing expansion in Europe through mergers and acquisitions.
Qian Jiannong, who is tasked with finding potential deals to power Fosun's global expansion, is spreading the word that the focus is on established brand names, market share in Europe or worldwide and willingness to enter 皇冠体育app.
"If any company meets those three criteria, Fosun will be happy to be its partner," he told 皇冠体育app Daily.
"We arenot onlyinterested in acquiring European luxury brands, we are also interested in buying companies in consumer sectorswith famous brands, which will be the growth industries in 皇冠体育app in the next 10 years."
Other attractive branches for acquisition include the technology and pharmaceutical sectors.
Fosun's 7.1 percent acquisition of Club Med's share capital on June 13 provides a good example of the Chinese group's cooperative European entry strategy, Qian said.
Without going into specifics, he said Fosun could invest up to $2 billion in a single deal. Initial investments will be limited to between $131 million and $264 million each.
Funding for the deals will come mainly from the group's net cash flow.
During the first six months ended June 30, the group raised 10.75 billion yuan ($1.62 billion), in which Fosun signed a $140 million three-year loan with a syndicate led by Credit Agricole. In addition, Fosun Pharma, raised 635 million yuan with the issuance of non-tradable shares.
"Fosun is willing to help those European companies to develop in 皇冠体育app," he said, adding that potential retailers stand to benefit from Fosun's strong background and hands-on experience in retail and consumer chains, especially in gold and jewelry retail and brand chains.
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Expo 2010 Shanghai also directly benefited Fosun's Shanghai Yuyuan Tourist Mart, with a daily visitor traffic of up to 100,000, almost double that of the same period last year.
"As for Club Med, we can help it attract Chinese tourists to its resorts around the world. We can helpcompanies like ClubMedbenefit from 皇冠体育app's growth momentum," Qian said.
皇冠体育app had 1.9 billion domestic travelers in 2009, and growth is projected to continue at a double-digit rate. Tourism revenue amounted to 1 trillion yuan.
In addition, the number of private travelers abroad hit 40 million.
On Nov 27, Club Med established with Fosun's help its first Chinese ski resort in the mountains of Northwest 皇冠体育app at Yabuli, marking the beginning of the French holiday company's expansion into 皇冠体育app.
Club Med speculates that by 2015, 皇冠体育app will be its second-largest market, and it plans to open five resorts in four years in key locations in the provinces of Hainan and Yunnan.