Fosun linked to big sale to cover debt

Fosun International (0656) is said by sources to have agreed to sell its stake in the parent of Nanjing Iron & Steel for 15 billion yuan (HK$16.3 billion) as one of China's largest non-state conglomerates disposes of assets to help cover debt repayment.

It appeared that Jiangsu Shagang Group was set to buy the roughly 60-percent stake in Nanjing Iron & Steel United Company from Fosun.

The three parties signed an initial agreement last week, sources also said.

Fosun International, the major listed vehicle of Chinese billionaire Guo Guangchang, suspended trading in its Hong Kong-listed shares yesterday pending "the release of possible inside information." Trading in the mainland for Nanjing Iron & Steel was also halted while Jiangsu Shagang rose to the daily limit in climbing 9.9 percent - its biggest advance since February.

Fosun said last month that it would sue Bloomberg for a "misleading" report that claimed Chinese regulators had asked banks to examine their financial exposure to Fosun.

Separately, Lanvin Group, a French fashion house owned by Fosun, reported a 73 percent growth in revenue to EUR202 million (HK$1.54 billion) in the first six months.