Chinese conglomerate Fosun International is said to be planning to sell a minority stake in Alibaba’s logistics arm Cainiao for up to $1bn, as per sources. Fosun plans to sell a less than 5% stake in Cainiao and the plan is only in early stages, they said. Cainiao is valued at $18-20bn, one of the sources said. The news is a positive update as Fosun has been in the spotlight due to high debt levels and is making a concerted effort to ease liquidity stresses by selling non-core assets. Months ago, Fosun’s management said that it planned to dispose of RMB 50-80bn ($7-10bn) in non-core assets within the next 12 months to reduce its debt levels and improve its leverage ratio. As part of its asset sales in late October, Fosun was planning to sell either a majority or minority stake in reinsurer Peak Re at a valuation of $500mn-$1bn in order to pay its debts. More recently, it was said to be looking at selling some of its Chinese and international assets – its domestic food and beverage business, EV battery unit, real estate involving ‘The Bund Finance Center’ and globally, its British baby stroller and nursery furniture company Silver Cross.
Fosun’s dollar bonds were trading higher with its 5.95% 2025s up 1.1 points to 51 cents on the dollar.
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