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Shares in Fosun barely budged in morning trading on Monday after the Chinese conglomerate confirmed it has fired the starting gun on spinning off its Ironshore insurance unit in New York.
Shares were up as much as 0.6 per cent on Monday before returning to their opening price. Fosun said in June it was considering a listing for Ironshore on either the Nasdaq or the New York Stock Exchange, and a Sunday filing to the Hong Kong Stock Exchange confirmed it had filed registration documents with the US Securities and Exchange Commission for the proposed spin-off.
Fosun’s purchase of the 80 per cent of the insurer it did not own – valuing Ironshore at $2.25bn – was its eighth deal in 2015.
Fosun had become less active following the four-day disappearance of its chairman, Guo Guangchang, in December to assist authorities with an investigation, according to the company. Mr Guo was said to have returned to China later that month after a brief trip to the US and Canada.
Shortly afterwards, his firm dropped plans to buy BHF Kleinwort Benson, the UK merchant bank, and in February cancelled plans to buy Phoenix, the Israeli insurer. But last week Mr Guo promised to take the Wanderers back into the Premier League and “stay there” after his company agreed to pay £45m for the second-tier football club.
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