Fosun International is said to be seeking strategic options that include selling either a majority or minority stake in reinsurer Peak Reinsurance in order to pay its debts. Sources said that the transaction which is at early stages, could value Peak Re at $500mn-$1bn, having received preliminary interest from potential buyers including PE firms. Fosun currently holds an 87% stake in the reinsurer, with Prudential Financial holding the remainder. Peak Re focuses on insurance including property and casualty, and life and health with over $2.1bn in gross written premiums at end-2021. The news comes just days after Fosun came out saying that it plans to dispose RMB 50-80bn ($7-11bn) of non-core assets to focus on its consumer-discretionary business.
Fosun’s dollar bonds moved higher with its 5.5% 2023s callable on 25 November 2022, up 2.1 points to 98.25, yielding 7.8%
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