China’s Fosun Confident It Has Cash to Buy Portuguese Insurer

Chinese conglomerate Fosun International Ltd (0656.HK), which is rapidly becoming one of China’s leading global investors, today reassured investors that it has adequate cash to finance its proposed 1 billion euro purchase of Portuguese insurer Caixa Seguros e Saude.

The company also indicated that it will continue to look for investment opportunities outside of China.

Speaking to Reuters, Fosun CEO Liang Xinjun said,

“Our own balance sheet is fully capable of paying for it, but we will also consider other funding channels,” he told Reuters in an interview, adding the firm saw strong growth in profit last year which will help its balance sheet. The 2013 financial results have not yet been published.

In addition to its insurance investment, Fosun this week announced plans for a 7-star Atlantis resort hotel in Shanghai, as part of a RMB 100 billion tourism initiative by the Shanghai-based company. The firm also made headlines in October last year when it agreed to purchase 1 Chase Manhattan Plaza from JP Morgan Chase for US$725 million.

According to the Reuter article, credit agency Moody’s Investors Service has put Fosun’s debt under review for a possible downgrade, due to the company’s its funding plan for the Caixa acquisition and its string of other recent investments.

In the same interview, Liang indicated that Fosun still had a taste for overseas acquisitions, particularly in the retail sector. “In the future, while continuing our investment on luxury brands, we will also consider brands of experimental consumption and retail financing,” Liang remarked.