Chinese billionaire Guo Guangchang is considering a reduction of his stake in a mid-sized securities firm, as the conglomerate he co-founded has been shedding assets following a credit scare.
(Bloomberg) — Chinese billionaire Guo Guangchang is considering a reduction of his stake in a mid-sized securities firm, as the conglomerate he co-founded has been shedding assets following a credit scare.Â
He has talked with at least three state-owned entities about investing into Topsperity Securities Co., previously known as Tebon Securities, according to people familiar with the matter who asked not to be identified as the matter is private. Discussions are ongoing and details of a deal, including the timeline, have yet to be decided. Guo may still decide to keep his stake, the people added.
Guo told Topsperity employees of his intention to pare his stake at the firm’s annual meeting in February, according to the people.Â
Guo didn’t respond to an email seeking comment. Media representatives for Topsperity and Fosun International Ltd., which he is chairman and controlling shareholder of and usually handles media inquiries on his behalf, didn’t reply to requests for comment.Â
Tycoon Once Compared With Buffett Pulls Fosun Back From Brink
Topsperity, incorporated 20 years ago, was the industry’s 66th-largest firm by assets in 2021, according to the latest available rankings from the Securities Association of China. A firm controlled by Guo held 94% of Topsperity as of last year, according to the securities firm’s most recent annual report.
Fosun, whose net income plunged 95% last year, has sold some $4.8 billion of assets since May and is seeking to unload billions more. The moves helped boost the firm’s stock and bonds after debt worries in 2022 sent the securities slumping.Â
–With assistance from Shirley Zhao.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.