Fosun International reduced its holdings of more than 26 million H shares in Xinhua Insurance, and the share ratio of “Fosun Galaxy” fell below 5% | Daily Economic News

On the evening of September 19, Xinhua Insurance (SH601336, stock price 27.48 yuan, market value 85.69 billion yuan) announced that Fosun International Co, Ltd (hereafter referred to as “Fosun International”) reduced its holdings by 26.1595 million shares H in the company on September 15. Shares, which account for about 0.84% ​​of the total share capital. After this round of reduction, the total share ratio of Fosun International and its joint actors has decreased to 4.9999% , which is lower than 5 %.

Regarding the reduction of holdings, New China Insurance said that this change in equity did not lead to changes in the controlling shareholder or the actual manager of the company.

The share ratio falls below 5%

According to the announcement about New China Life Insurance, the company has recently received the “New China Life Insurance Co, Ltd Shareholder Reduction Notice Letter” and the “Short Report on Changes in Equity” issued by the shareholder Fosun International. and its associated parties.

Specifically, on September 15, 2022, Fosun International reduced its holdings of 26.1595 million H shares of the company through block transactions, accounting for approximately 0.8386% of New China Insurance’s total shares. The reduction in its holdings resulted in Fosun International and its affiliated parties (Shanghai Fosun High-Tech (Group) Co., Ltd., Fidelidade-Companhia de Seguros, SA, Peak Reinsurance Company Limited (Peak Reinsurance Co., Ltd.) , Nanjing Iron and Steel United Co, Ltd.) The share ratio of New China Insurance decreased to about 4.9999%, and the share ratio was less than 5%.

Xinhua Insurance said that before this equity change, Fosun International and its joint parties held a total of 182 million H shares in the company, accounting for about 5.8386% of the company’s total issued shares. At the time of this announcement, Fosun International and its persons acting jointly held a total of 156 million H shares in the company, accounting for approximately 4.9999% of the company’s total shares, and were no longer a shareholder holding more than 5% of the company’s shares.

According to the equity change report disclosed by Xinhua Insurance, the information disclosure obligation is Fosun International and its joint parties. This time is reported to be a routine investment and withdrawal arrangement to reduce the holdings. The information disclosure obligation does not rule out the possibility of owning H shares of New China Insurance in the next 12 months based on the general situation of the securities market and considering the development of New China Insurance and its stock price. As of the date of signing this report, the information disclosure obligee has no plan to increase or decrease its A shares of New China Insurance in the next 12 months.

Coincidentally, Yuyuan shares (SH600655, stock price of 7.03 yuan, market value of 27.4 billion yuan) also issued an announcement on the same day that the controlling shareholder Shanghai Fosun High-Tech (Group) Co., Ltd reduced its holdings from Yuyuan shares by 3892.63 from 26 August to 19 September. 10,000 shares, accounting for 1% of the total share capital, with a discount of nearly 300 million yuan. After this reduction, the total share ratio of Fosun Hi-Tech and its persons acting jointly decreased to 67.46%.

The “Daily Economic News” reporter noticed that Fosun has been reducing its holdings frequently since this year. After selling shares of listed companies such as Taihe Technology, Tsingtao Brewery, and Yuyuan, it has recently proposed to reduce its holdings of Fosun Pharma and Jinhui , wine scheme.

Adhere to a balanced financial strategy

Fossil has noticed the impact of a sharp drop in shares on the capital market. According to the Securities Times, on September 19, Fosun Hi-Tech issued a statement stating that the company’s recent reductions and sales are a continuation of the company’s financial strategy of maintaining a balance between investment and withdrawal, dynamic sorting and optimization of asset portfolios. constant work, not just to cope, the current market environment. The complex external environment has increased public attention to the company’s asset disposal, leading to a one-sided interpretation of individual asset disposal behavior, while ignoring the general principle of company asset optimization, that is, long-term dynamic optimization.

It is worth noting that Fosun Galaxy’s discount is not limited to the capital market. 3 of the 4 Fosun companies plan to clear the equity of Yongan Property & Casualty Insurance.

According to Yongan Property & Casualty Insurance’s announcement in early September, Shaanxi Caijin Investment Management Co., Ltd. intends to transfer the shares of Yongan Property & Casualty Insurance held by 3 Fosun Galaxy companies, with a total share ratio of 22%, namely: Yadong Shankong Venture Capital Co., Ltd. 596.866 million shares (19.83% share ratio) held, 27.5381 million shares (0.92% share ratio) held by Yadong Yihang Venture Capital Co., Ltd., 37.66742 million shares held by Shanghai Fosun Shares of Industrial Investment Co., Ltd. (1.25%).

At the same time, Shaanxi Credit Promotion Co, Ltd plans to transfer 75,332,580 shares of Yongan Property & Casualty Insurance (2.50%) held by Shanghai Fosun Industrial Investment Co, Ltd, and 45,044,060 shares held by Shanghai Fosun Industrial Technology Development . Co., Ltd. Shares in Yongan Property & Casualty Insurance (1.50% share ratio).

The above changes in shareholders are subject to the approval of the Shaanxi Banking and Insurance Regulatory Bureau. If approved, 3 of 4 Fosun companies will withdraw from Yongan Property & Casualty Insurance’s shareholder sequence, and only one Shanghai Fosun Industrial Company will hold Yongan Property & Casualty Insurance’s equity. Fosun’s shareholding in Yongan Property & Casualty will decrease from 1.224 billion shares to 442 million shares, and the share ratio will decrease from 40.68% to 14.68%.

Regarding the reduction of charges, at that time, Fosun Group told reporters that the project is the company’s normal business activity and is still under regulatory approval. For details, please refer to the company’s announcement.

Cover image source: Photo Network-500445148


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