Chinese conglomerate Fosun International sells German private bank HAL to ABN Amro for US$731 million to boost liquidity

Company aims to cut its debts by 10 billion yuan (US$1.38 billion) annually in the next two to three years

The deal, the second asset sale conducted by Fosun in Europe since mid-April, is expected to close in the first quarter of 2025

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German private bank Hauck & Aufhauser Lampe (HAL) in Munich. The acquisition will increase ABN Amro’s assets by €26 billion (US$28 billion). Photo: Handout

Published: 5:30pm, 28 May 2024Updated: 6:06pm, 28 May 2024

Fosun International, one of China’s largest private-sector conglomerates, has accelerated its pace of asset disposal after agreeing to sell German lender Hauck & Aufhauser Lampe (HAL) to Dutcj bank ABN Amro for €672 million (US$731 million).

Shanghai-based Fosun, controlled by Chinese billionaire Guo Guangchang, announced on Tuesday that the proceeds of the sale will be used to replenish general working capital.

The deal, the second asset sale conducted by Fosun in Europe since mid-April, is expected to close in the first quarter of 2025. Last month, Fosun sold an 8.2 per cent stake in Belgian insurer Ageas to BNP Paribas for €670 million.

The divestment aims at streamlining Fosun’s portfolio and “enhancing [our] asset-light operation strategy”, the company said in a filing to the Hong Kong stock exchange. “It also demonstrates the company’s continuous efforts to create maximum value for its shareholders.”