Fosun spikes on Bally deal news
by Janice Huang
Mainland Chinese conglomerate Fosun International (0656) outperformed, as its share price spiked 11.73 percent on news that it is planning to acquire luxury brand Bally.
Fosun International and Chinese apparel manufacturer Fujian Septwolves Industry are reportedly among suitors vying for luxury leather goods firm Bally International , which is said to have a price tag of 600 million euros (HK$5.6 billion).
Bally has also drawn interest from Japanese trading firm Itochu Corp as non-binding offers came in this week.
Fosun International, backed by Chinese billionaire Guo Guangchang, also has stakes in Greek jewelry brand Folli Follie and American fashion brand St. John.
Meanwhile, Shanghai Fosun Pharmaceutical (Group) scaled back its proposed purchase of control in Indian drugmaker Gland Pharma to a level that would allow it to avoid a government review of the biggest Chinese acquisition in India.
Fosun Pharma, a subsidiary of Fosun International, will now buy a 74 percent stake for US$1.1 billion (HK$8.58 billion), according to a statement. It had originally sought to buy an 86 percent stake in the closely-held Indian drugmaker from an investor group including KKR & Co. However, a stake that size must be signed off by India's Cabinet Committee on Economic Affairs, which was poised to reject the move.
The reduced stake will avoid a government review, Fosun said, and the deal is set to be completed by October 3 as all the main conditions have been met. The deal gives Fosun access to Gland's stable of generic injectable medicines.
Source: The Standard