Gas stations were never that attractive to me as an investment, but a group of major firms seem to think differently as oil refining giant Sinopec (HKEx: 386; Shanghai: 600028) gets set to sell up to 30 percent of its retail arm. That’s my conclusion, following reports that domestic investment giant Fosun (HKEx: 656) and Internet leader Tencent (HKEx: 700), and Canadian retailer Alimentation Couche-Tard (Toronto: ATDb) are among the finalists bidding for a stake in the Sinopec unit. In separate headlines, the acquisitive Fosun is also reportedly in talks for another mega deal that would see it purchase the US unit of global insurance giant Swiss Re (Switzerland: SREX). Read Full Post…
News of major new fund-raising by 2 Chinese financial firms is casting a spotlight on the wide range of private lending organizations that are likely to emerge in the years ahead, fueled by Beijing’s desire to create a more efficient lending environment. In this case we’re seeing activity at opposite ends of the spectrum, led by a massive new rights offer by private equity giant Fosun International (HKEx: 656), and a more modest but still significant second-round venture capital investment for peer-to-peer (P2P) lending platform Ppdai.com.
Both of these moves spotlight the wide array of choices that investors will soon have for private-sector financiers in China. But this emerging sector will also carry significant risk, since Beijing is still trying to figure out how to adequately regulate this group to ensure its longer-term healthy development. Read Full Post…
Private equity investor Fosun International (HKEx: 656) is closing in on a landmark but controversial deal to buy US publishing giant Forbes Media, which would become the first purchase of a major western media firm by a Chinese company. The deal is almost certain to draw attention in the US where Forbes is based, with some calling for the government to stop the sale over concerns that Fosun could interfere with Forbes’ editorial independence and block publication of sensitive content. Read Full Post…
Just days after making headlines for being selected to buy Portugal’s top insurer, Chinese investment firm Fosun International (HKEx: 656) is back in the news as a finalist in the bidding for Forbes Media, publisher of Forbes magazine. The deal is just the latest in a recent series of major purchases for Fosun, and more broadly kicks off a year that could see record overseas M&A by a rising group of Chinese investment firms. Fosun’s evolving strategy seems to target companies that are profitable but also laggards in their areas, which is relatively common among such investors. But in this case, I have serious doubts about its pursuit of Forbes due to the global rapid decline of the traditional media industry. Read Full Post…
A global buying spree by cash-rich Chinese investors has taken a turn onto the tourist map, with word that Fosun International (HKEx: 656) is taking part in a bid to purchase France’s Club Med (Paris: CU), a pioneer in the upscale resort business. I particularly like this deal, as Fosun can actually provide something more than just cash to Club Med, as the European company gets set to embark on an aggressive expansion to bring its brand of exclusive resorts to China. Read Full Post…
