Fosun International Ltd shares, which were suspended on Friday after a report that Chairman Guo Guangchang had gone missing, plunged by the most in five months after resuming trading on Monday.
The shares fell 10 percent to HK$11.98 at 9.51am in Hong Kong, after plunging as much as 13.5 percent earlier, the biggest intraday decline since July 8. Chinese billionaire Guo is back at work after aiding authorities with an investigation and is attending an internal conference on Monday, according to people familiar with the matter.
Guo, 48, who describes himself as a student of Warren Buffett, has built a global empire spanning everything from insurance and holiday resorts to entertainment through dozens of deals over the past three years. Reports that Guo couldn’t be reached reverberated through markets, causing several companies linked to his conglomerate to halt their shares from trading on Friday.
Shares of Shanghai Fosun Pharmaceutical Group Co., which were also halted on Friday, fell 13 percent in Hong Kong trading to HK$21.65.
Guo was assisting with an investigation into former Shanghai vice mayor Ai Baojun, people familiar with the situation said Friday. Caijing magazine earlier on Monday reported that Guo had returned home.
Confident on future
On a conference call Sunday, Fosun International President Wang Qunbin said he remains confident of the company’s cash flow and future, and said that the probe is most likely related to "personal matters."
Guo’s conglomerate spent $5.7 billion over two years acquiring insurance assets, according to data compiled by Bloomberg. The insurance businesses, such as Portugal’s Cia de Seguros Fidelidade Mundial SA and Bermuda-based Ironshore Inc., provide low-cost funding for acquisitions in other industries.
Fosun International has $2 billion of acquisitions announced this year that haven’t been completed. The company is competing for Anglo-German banking group BHF Kleinwort Benson Group and agreed to acquire Israeli insurer Phoenix Holdings Ltd. in June. The company is competing for Anglo-German banking group BHF Kleinwort Benson Group and agreed to acquire Israeli insurer Phoenix Holdings Ltd. in June.
Bloomberg
Mon Dec 14 2015
Guo is said to be assisting with an investigation into former Shanghai vice mayor Ai Baojun. - AFP Photo/Files
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