Fosun to Offload Steelmaker Stake for $2.1 Billion as Debts Mount

By Luo Guoping, Bao Zhiming, Peng Qinqin, Bao Yunhong, Shi Yimin and Guo Yingzhe

Fosun has cut holdings in at least eight listed companies this year and will have cashed out nearly 40 billion yuan if the deal with Shagang Group is successful, according to Caixin calculations. Photo: VCG

Fosun International Ltd. is planning to sell its stake in a Chinese steelmaker to a private metals titan for around 15 billion yuan ($2.1 billion), according to sources with knowledge of the deal, which would net the debt-laden conglomerate much-needed liquidity.

Hong Kong-listed Fosun has inked an agreement with steel giant Jiangsu Shagang Group to transfer its 60% shareholding in Nanjing Nangang Iron & Steel United Co. Ltd. The latter owns 57.2% of Shanghai-listed Nanjing Iron & Steel Co. Ltd. (NISCO) (600282.SH).