China's 'Fosun Group,' one of the expected bidders for Novo Banco when it is sold off by the state to recoup billions of taxpayers’ money, has hailed Portugal as “the best country in Europe to invest in.”
Liang Xinjun, CEO of China’s largest privately-owned conglomerate Fosun, commented in Shanghai over the weekend that “I’m not saying other countries aren’t good, but Portugal is the best. I say this to any Chinese who wants to invest in Europe.”
Xinjun added, “it is easy to establish friendships in Lisbon,” a city where “costs are lower” than in other European capitals.
“I know lots of people in Lisbon and we share the same kind of culture which is based on trust,” added the otherwise sane businessman.
Fosun has been on a bargain basement buying spree in recent years as the Espírito Santo Group crumbled into insolvency, snapping up insurance company Fidelidade and health care company Espírito Santo Saúde.
As for Fosun’s plans, Xinjun would not be led on the question of whether Fosun would be bidding for Novo Banco, but was happy to say that the group is “very interested in anything related to health care and healthy lifestyles” so he could be looking for investment opportunities in Portugal’s “agro-food, tourism, leisure, wine and media sectors.”
For Fosun, Portugal now is its largest market after the USA and Portugal has become one of the main destinations for Chinese investments since China Three Gorges became the largest shareholder of national power company EDP in 2012.
Since then, China has spent an estimated USD10 billion buying up sound companies and distressed assets alike.
These sorts of comments are music to the ears of the Passos Coelho government which has welcomed China into the country like an indigent Lord selling off his country estate to a rich foreigner.
There remains doubt that any bid for Novo Banco will cover the sum owed to taxpayers, also doubt as to who will make up the difference should there be a shortfall.
Xinjun chose not to discuss Novo Banco, so Fosun will be making an offer, but he knows the desperate situation the government is in and its need to sell off the bank with indecent haste.
There is the question of pending legal actions involving Novo Banco involving ripped-off depositors such as Goldman Sachs' Oak Finance (€770 million), and the €500 million still owed to former BES customers.
The government will have to sell Novo Banco with a raft of indemnities, something Fosun is well aware of.
Considered one of the most lucrative Chinese private groups, Fosun has interests in sectors as diverse as insurance, fashion, health, cinema, real estate and pharmaceuticals.
The geography of the group's investments includes the United States, Spain and France, where it recently bought Club Med.
This year Fosun bought Cirque du Soleil, an operation described by Fosun as "a milestone in the development of a happy lifestyle."
The Fosun Group employs around 100,000 people in mainland China and is listed on the Hong Kong Stock Exchange. The four founders own around 73% of the shares - last year the group earend profits of USD1.2 billion.
