Fosun International, the owner of the Club Med chain of resorts, is reportedly selling its stake in Nanjing Iron & Steel for RMB 15 billion ($2.1 billion), as the heavily indebted group seeks to raise cash to trim its borrowings, reports the South China Morning Post.
Fosun is selling its assets in Nanjing Iron & Steel to Jiangsu Shagang Group, according to a source close to the deal. The two sides are finalizing the agreement, the person added.
Trading in shares of both Fosun and Nanjing Iron & Steel was suspended on Monday, pending announcements involving inside information, according to exchange filings. No other details were disclosed.