Parent firm reportedly seeking a valuation of $1 billion
By Kenneth Araullo
Feb 08, 2024 Share
Chinese conglomerate Fosun International is revisiting efforts to divest its majority stake in Hong Kong’s Peak Reinsurance, having not succeeded in a prior attempt.
Sources close to the matter revealed to Bloomberg that BNP Paribas SA has been enlisted to assist Fosun in locating a suitable buyer for the reinsurance company, with expectations of achieving a valuation around $1 billion for Peak Re.
The sale process has officially commenced, with promotional materials already dispatched to potential purchasers, including private equity entities and financial services firms based in Asia. The report, however, notes that the sale deliberations are at an early stage, and no definitive choices have been made. Fosun retains the option to halt the sale process at any point.
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The move comes as part of Fosun’s broader strategy to alleviate its debt burden, with the sale of Peak Re being considered as a viable option for generating funds, as previously reported by Bloomberg News in 2022.
According to the latest annual report from Peak Re, Prudential Financial owns approximately 13% of the reinsurer, while the remainder is held by Fosun.
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