China’s Fosun to reduce stakes in two Brazilian financial firms

A company logo of Fosun International is seen at the Fosun Fair held alongside the annual general meeting of the Chinese conglomerate in Hong Kong, China May 28, 2015. REUTERS/Bobby Yip/File Photo

China’s Fosun International Ltd has decided to cut stakes or even divest completely from two financial firms it controls in Brazil, a person with direct knowledge of the matter said on Tuesday.

Reuters reported last year that Fosun was considering potential partners to increase the offering of services by its Brazilian broker Guide Investimentos.

But a recent review of Fosun‘s global portfolio by top management has sped up the search, the person said. The group has also decided to reduce its stake in asset manager Rio Bravo, the person added.

Fosun decided to look for a partner so it will not need to fund alone the investments needed to expand both financial firms over the coming years, the person said.

Depending on the bids received, Fosun may decide to completely divest from both firms, the person said, requesting anonymity to disclose private talks.

In a statement to Reuters, Fosun said it is “looking for new investors to bolster its businesses in Brazil”, but denied any intention of completely divesting from Guide or Rio Bravo.

Guide and Rio Bravo did not immediately respond to requests for comment.

Guide’s last valuation was around 600 million reais ($145 million) and the broker lost 1.3 million reais ($314,572) in the first nine months of last year, the latest central bank data showed.

Brazilian newspaper Valor Economico reported earlier on Tuesday that Fosun had hired Credit Suisse to sell the stakes.

Reuters

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.