Jan 15, 2020 (China Knowledge) - China’s Fosun International Ltd has decided to reduce stakes and might even totally divest from two financial firms it controls in Brazil, a person with direct knowledge of the matter said on Tuesday.
Last year, Reuters reported that Fosun was considering potential partners to expand the services offered by its Brazilian broker Guide, Investimentos. However, a recent review of Fosun‘s global portfolio by top management has expedited the search. The group has also decided to cut its stake in asset manager Rio Bravo, the person said.
It decided to look for a partner so it does not have to fund the investments required to expand both financial firms alone over the coming years, the person said.
Based on the bids received, Fosun may choose to divest totally from both firms, the person said. In a statement to Reuters, Fosun said it is “looking for new investors to bolster its businesses in Brazil”, but denied any plans of completely divesting from Guide or Rio Bravo.
Guide’s last valuation was around USD 145 mln and the broker lost USD 314,572 in the first nine months of last year, based on the latest central bank data.
Valor Economico, a Brazilian newspaper, said earlier on Tuesday that Fosun had hired Credit Suisse to sell the stakes.
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