Fosun to sell shares in diamond-grading firms for US$455 million

CHINESE conglomerate Fosun International said one of its indirect subsidiaries has agreed to sell its stake in diamond-grading firm International Gemological Institute’s (IGI) business in three regions for US$455 million.

Alpha Yu, an indirect subsidiary of Fosun, and Lorie Holding, a minority holder of IGI shares, have entered into a sale-and-purchase agreement with BCP Asia II for the sale of IGI Belgium, IGI Netherlands and IGI India, according to an exchange circular on Sunday (May 21).

Including Lorie Holding’s portion of the agreement, the total size of the deal is US$570 million and will be “payable in cash” to the sellers.

The company was weighing a sale of IGI in January and was working with Deutsche Bank on the potential divestment, Bloomberg News reported.

Shanghai Yuyuan Tourist Mart, a Fosun unit, bought an 80 per cent stake in IGI in 2018 for US$108.8 million from shareholders Roland Lorie and Marc Brauner. The founding Lorie family kept the remaining 20 per cent.

Amid headwinds from China’s credit market crisis and a 95 per cent plunge in profit, billionaire Guo Guangchang-backed Fosun has embarked on a slew of asset sales and offloaded some US$4.8 billion since last May. BLOOMBERG