Fosun International, the Chinese conglomerate which recently bought stakes in Cirque du Soleil and Jeff Robinov’s Studio 8, is adding $1.2 billion to its acquisitions capacity. The company is raising the cash through the issue of new shares on the Hong Kong Stock Exchange.
It is offering the shares through a placing of 465 million new shares at HK$20 apiece, a discount of less than 5% to the stock’s prior trading price. The new shares represent 6.2% of the group’s enlarged capital. Fosun says that the new cash will improve liquidity, and be used to fund further acquisitions.
With interest that span insurance, pharmaceuticals and property, Fosun has recently made a strong push into entertainment and lifestyle. Last year it also expanded its stake in Chinese film distributor Bona Film Group to 20%, and last month revealed that it was starting up a film production unit. It also bought control of Club Mediterranee, the French holidays and tours group.