Fosun Group has agreed to sell its 60% stake in the parent company of Nanjing Iron & Steel Co. to a unit of CITIC Ltd for $2bn. This move comes after Fosun had initially terminated a plan to sell its stake to Jiangsu Shagang Group Co., another iron and steel company for the same consideration. CITIC said that the purchase of the above stake will increase its unit’s special steel production capacity and extend its lead in the industry. Nanjing Iron’s products are complementary to the group’s existing products in the steel business.
Fosun’s dollar bonds were trading steady with its 6.75% bonds due 2023 at 97.9, yielding 15.6%.