China’s Fosun International will reduce its stake in two financial firms in Brazil: Rio Bravo and Guide Investimentos.
(Reuters) China’s Fosun International Ltd (0656.HK) has decided to cut stakes or even divest completely from two financial firms it controls in Brazil, a person with direct knowledge of the matter said on Tuesday.
Reuters reported last year that Fosun was considering potential partners to increase the offering of services by its Brazilian broker Guide Investimentos.
But a recent review of Fosun’s global portfolio by top management has sped up the search, the person said. The group has also decided to reduce its stake in asset manager Rio Bravo, the person added.
Fosun decided to look for a partner so it will not need to fund alone the investments needed to expand both financial firms over the coming years, the person said.
Depending on the bids received, Fosun may decide to completely divest from both firms, the person said, requesting anonymity to disclose private talks.
In a statement to Reuters, Fosun said it is “looking for new investors to bolster its businesses in Brazil”, but denied any intention of completely divesting from Guide or Rio Bravo.
Guide and Rio Bravo did not immediately respond to requests for comment.
Guide’s last valuation was around 600 million reais ($145 million) and the broker lost 1.3 million reais ($314,572) in the first nine months of last year, latest central bank data showed.
Brazilian newspaper Valor Economico reported earlier on Tuesday that Fosun had hired Credit Suisse to sell the stakes.