Fosun International Limited, a Shanghai based private equity firm, has entered into a definitive agreement with Ironshore to purchase ordinary shares that would represent 20 percent of Ironshore’s total outstanding shares.
Ironshore says it will use all of the proceeds from the share issuance to fund repurchases of outstanding ordinary shares from existing shareholders, including existing long-term private equity shareholders.
After giving effect to Fosun’s equity purchase and Ironshore’s use of proceeds, Fosun will be the largest shareholder of Ironshore. However, the transaction is subject to the receipt of regulatory approvals and other customary closing conditions.
Fosun is a leading investment group taking roots in China with a global foothold, and regards the development of the insurance business as a premium path in connecting its investment capability to long-term high-quality capital. Currently, Fosun has more than one third of its total assets invested in insurance business including investments in Yong’an P&C Insurance, Pramerica Fosun Life Insurance and Peak Reinsurance and in Fidelidade Group, Portugal’s largest insurance company.
Guo Guangchang, chairman of Fosun, says, “Fosun has been making determined efforts in establishing insurance as its core business. Our strategic investment in Ironshore represents another milestone for Fosun and will enable Fosun to further expand its insurance business and strengthen its comprehensive financial capabilities.”
Kevin H. Kelley, CEO of Ironshore, says, “We are excited about our new partnership with Fosun as a core long-term strategic investor in Ironshore. Fosun brings a global perspective with valuable Asian market connections combined with a very strong investment management track record. This partnership further enhances Ironshore’s unique position to grow profitably in the global insurance market.”
Fosun, Ironshore, M&A, equity, investment, share purchase, Asia, China, Kevin H. Kelley