Fosun International Ltd. will sell its entire equity interests in 28 real estate companies to Shanghai Yuyuan Tourist Mart Co. Ltd for 24.16 billion Chinese yuan, as part of an ongoing reorganization.
The parties entered into a conditional sale-and-purchase agreement whereby Shanghai Yuyuan will settle the purchase by issuing shares to Fosun International at an issue price of 9.98 yuan per share.
Both parties agreed to a lock-up period of 36 months from the date of the completion of the issuance, during which none of the issued shares by Shanghai Yuyuan to Fosun International will be transferred to any third party.
Following the completion of the reorganization, Fosun International's equity interest in Shanghai Yuyuan will increase to 69.69% from 26.45%, after which the latter will become a subsidiary of the former. The 28 real estate companies, meanwhile, will remain as subsidiaries of Fosun International.
As of May 25, US$1 was equivalent to 6.87 Chinese yuan.