May 26, 2017 / 2:46 AM / 3 months ago

China's Fosun to sell real estate firms to Shanghai Yuyuan for $3.5 billion

FILE PHOTO: A company logo of Fosun International is seen at the Fosun Fair held alongside the annual general meeting of the Chinese conglomerate in Hong Kong, China May 28, 2015.Bobby Yip/File Photo

HONG KONG (Reuters) - Chinese conglomerate Fosun International Ltd (0656.HK) said it will sell 28 real estate companies to Shanghai Yuyuan Tourist Mart Co Ltd (600655.SS) for 24.16 billion yuan ($3.5 billion) as part of a reorganization to better allocate resources.

Shanghai Yuyuan will settle the deal by issuing 2.42 billion new shares at 9.98 yuan each, boosting Fosun's stake in the gold and jewelry retailer to 69.69 percent from 26.45 percent, the conglomerate said in a filing to the Hong Kong stock exchange late on Thursday.

Fosun, which saw its chief executive and vice president step down in a surprise reshuffle in March, said the reorganization would also enable more focused development and better strategy planning.

Reporting by Donny Kwok

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