The Shanghai-based conglomerate Fosun has confirmed that it has recovered a EUR1.1 billion-investment, in which it had previously applied to buy Portugal’s largest insurer, Fidelidade, that already operates in Macau and is set to pursue operations in mainland China.
According to the Portuguese newspaper Diário Económico, Liang Xinjun, Fosun’s CEO informed Portuguese reporters in Shanghai that the company is investigating measures to reduce its debt, namely through issuing new shares and through selling securities under their portfolio.
Meanwhile, Fidelidade invested EUR1 billion into Fosun’s debt and EUR337 million into property owned by the group in Australia and Japan. Mr Xinjun stressed that these investment strategies do not bear any risk to Fidelidade, and will in fact serve to improve the insurance company’s profitability. “These were transparent investments and were authorized by regulators. Fidelidade can sell bonds whenever it wishes,” he added.
Fosun International won bidding for control of state-owned Caixa Seguros, Portugal’s largest insurance group. Fosun acquired an 80-percent stake in the company, which is owned by the state-owned bank Caixa Geral de Depósitos (CGD).
Fidelidade’s recent investments in real estate and debt are part of a wider plan to improve its profitability. In 2014, its net income increased by 62 percent, reaching EUR190 million. Investments in real estate and infrastructure have also increased. Fidelidade invested in three real estate projects that are overseen by Idera, a company that was acquired by Fosun last year. These include two buildings in Japan and one building in Sydney.
Fosun’s CEO stated that Fidelidade “will become one of the most competitive and profitable insurers in Europe within two to three years.”
Bloomberg reported yesterday that Fosun International Ltd. will be acquiring the controlling stake of Delek Group Ltd in Phoenix Holdings Ltd., which is considered Israel’s fourth-largest insurance provider by market value.
chinese say portugal ‘is best country’ to invest
Guo Guangchang, the Chairman of Fosun, has said that, “Portugal is the best European country in which to invest.” Mr Guo’s corporation has already acquired two Portuguese companies, Fidelidade and Luz Saúde. Meanwhile, the Chinese conglomerate Fosun is also investigating the acquisition of Novo Banco, which is the successor to Banco Espirito Santo (BES), following a state rescue last year. Mr Guo said that his company’s interest in Portugal goes beyond banking and insurance. “We are paying attention to all opportunities,” he said. The company would be keen to invest in tourism, fashion, leisure or entertainment projects.
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