Investing.com– China’s Fosun Tourism Group (HK:1992) shares surged on Wednesday, a day after the company proposed to take itself private via buying back the shares its controlling shareholder does not already own.
Fosun Tourism has proposed to buy back all the outstanding shares at HK$7.80 each, reflecting a 95% premium to stock’s last close, and valuing the firm at HK$9.71 billion ($1.25 billion)
Fosun Tourism’s Hong Kong listed shares surged 81% on Wednesday to HK$7.24, their highest level since October 2023.
The company’s controlling shareholder Fosun International Ltd (HK:0656), which already owns 78% of the company, will acquire rest of the shares and de-list Fosun Tourism.
Trading in company’s shares had been halted since late November, until it resumed on Wednesday after the offer was announced.
The Hong Kong listed firm’s shares have remained at multi-year lows before Tuesday’s offer.
Fosun International has been struggling with high debt levels. It was looking to sell all or part of its luxury resort Atlantis (WA:ATSP) in southern China as part of its efforts to reduce debt, Reuters had reported earlier this year.
