Guo Guangchang, Chairman of Fosun International, speaks
during an interview in Beijing, China, June 28, 2016.
Fosun Group, China's biggest private conglomerate, will look for more opportunities in the United Kingdom and Europe in the volatile wake of Britain's referendum vote to leave the European Union, the company's billionaire co-founder and chairman said on Tuesday.
Guo Guangchang, a self-styled student of U.S. investor Warren Buffett, said the Brexit vote has created more opportunities for investors amid jumpy financial markets following Thursday's referendum.
"For a value investor, volatility is a friend not an enemy. Market volatility and panic will probably bring better investment opportunities. So we are increasingly looking for development opportunities in Europe, and particularly in the UK," Guo said.
The Brexit vote has reverberated through financial markets, sending the pound GBP= to its lowest level in 31 years despite government attempts to relieve some of the confusion about the political and economic outlook.
"Our currency risks in the UK have been fully hedged because we used insurance funds for some investments," Guo said, adding his company has not been affected much by the Brexit vote.
Guo, 49 and one of China's most powerful business leaders, said now is also a good time to invest in oil and commodities. "Oil is not trading at a high price, and Fosun has accumulated experience and learned lessons. So we will increase our investment in oil."
REDUCING DEBT LOAD
Guo said Fosun will this year focus on its tourism and health interests.
Already invested in medical companies, Fosun will invest more in health management and health insurance, he said, and will create synergies among its tourism holdings.
The group is, however, adopting a "conservative" expansion strategy as it looks to gradually reduce its overall debt ratio, extend debt durations and lower financing costs, Guo said.
Fosun plans to list U.S. property and casualty insurer Ironshore Inc "as soon as possible" this year, Guo told. Fosun International said last week it would spin off Ironshore, which it spent $2.3 billion over two years to acquire, through a listing on the New York Stock Exchange or Nasdaq market.
While it reduces its debt load, Fosun has slowed its foreign investments - just as China's outbound M&A deals have soared. Deals so far this year have topped last year's total of $106 billion, and domestic investment bank CICC has projected total overseas acquisitions could rise to $150 billion this year.
Guo, ranked 19th on Forbes' China Rich List last year with a net worth of $5.3 billion, told last month that Fosun was "working hard" to reduce debts and obtain an investment grade rating - three notches above Ba3.
In April, Moody's restored the outlook on Fosun International Ltd's Ba3 corporate family rating to stable from negative, reflecting Fosun's "demonstrated ability to maintain its access to the funding markets and improve its debt maturity profile."
Fosun first partnered with state-owned enterprises and invested in industrial assets before turning to insurance and consumer businesses.
Guo serves as a delegate to the National Committee of the Chinese People's Political Consultative Conference, a parliamentary advisory body.
Reuters
Please
contact us in case of Copyright Infringement of the photo sourced from the internet, we will remove it within 24 hours.
京公网安备 11010502030596号
