Rehabilitation international 2.2 billion "privatization" to integrate real estate business

Fosun International Limited (Fosun International, 00656.HK) and Forte (Group) Co., Ltd. (02337.HK) January 20 night in the Hong Kong Stock Exchange issued a joint announcement that Fosun International is proposed to buy the entire shares of the Forte group at a price of 3.5 yuan per share (note: "Privatization"), The total purchase price amounted to 2.2 billion yuan.　　Upon completion of the acquisition, the Forte Group will apply to revoke the listing of H shares in the Hong Kong stock Exchange. Data show that Forte Group, a subsidiary of Fosun International, was listed on HKEx in February 2004 and was the first mainland company to be listed in Hong Kong, and its main business was to develop and sell high quality commercial and residential real estate.　　Yesterday, Forte Group Rose 20.07%, closed to HK $3.35/share.　　The Forte business will not move as of the date of announcement, Fosun International owns about 1.459 billion shares of the Forte Group and about 326 million H shares, accounting for about 70.56% of the Forte Group's shares, and accounts for a total of about 99% per cent of the share issued by the Forte Group and 30.86% of the shares issued by the Forte Group. The announcement said Fosun International proposed to purchase a total of 729.8 million shares of the H-shares at a cost of HK $2.5544 billion, at a price of HK $3.5 per share. After the completion of the H-share acquisition, Fosun International has purchased 14.8043 million shares of Forte shares at a cost of 43.9 million yuan.　　Domestic shares offer a tender of HK $3.50 in cash per share. Upon completion of the takeover offer, Fosun International intends to continue to operate the existing business of Forte, and is not prepared to make any major changes to the existing business operations of the resumed land.　　Fosun International also said it intended to ensure that the management or employees of the Forte group would not be subject to any major changes arising from the takeover offer. In order to better support forte "now Forte Group's operating conditions are normal, the reason for the acquisition by Fosun International is to remove obstacles for the next development of Forte Group." Fosun International said that the real estate development of Forte Group is cyclical, capital-intensive and has a high demand for financing capacity, but as a registered H-share company listed on the Stock exchange of Hong Kong, the Forte Group has very limited ability to raise funds overseas.　　On the other hand, due to the provisions of the listing rules of Hong Kong on the related transactions between listed companies and their controlling shareholders, Fosun International is unable to inject more capital into the Forte Group and the group cannot achieve further expansion. Forte Group in recent years, sales figures show that the first breakthrough in 2010 billion sales scale, only with Vanke Beijing, Shenzhen branch sales are flat.　　At the end of June 2010, Fosun International decided to inject 2.3 billion capital into the Forte group to support its growth, but eventually the issue was not approved by the relevant regulators.　　Fosun International announced in the announcement that after the acquisition of the recovery Group H-Shares to retire, Forte Group will be able to rely on Fosun international greater financial support, have stronger strength to develop large-scale real estate projects, and the Forte group no longer need to continue to maintain the stock exchange of Hong Kong, the main board listing of the cost and management resources. FosunGroup intends to integrate real estate business Fosun International is the Shanghai Fosun High-Tech (Group) Co., Ltd. (hereinafter called Fosun Group) of the parent company, outside most of the analysis that the move or for Fosun Group to integrate its real estate business important link.　　Public data show that the Fosun Group owns Forte Group, the source of production, star-Hao capital, etc. covering the residential, commercial, circulation, funds and other real estate industry chain business, but are independent operations. "The integration of dispersed real estate business to expand the size of the real estate business should be the trend of Fosun Group." According to a market observer, Fosun's chairman, Guo, has been one of the role models for Fosun, and its real estate business plays an important role in diversified industries.