China conglomerate Fosun plans sale of $527 million Tsingtao stake

HONG KONG (Reuters) - Chinese conglomerate Fosun International Ltd said on Tuesday it has agreed to sell all its 4.89% stake in Tsingtao Brewery Co Ltd through share placement, raising HK$4.14 billion ($527.47 million) for general working capital.

Fosun's subsidiaries Fosun Industrial, Fidelidade Companhia de Seguros S.A., and a unit of China Momentum Fund L.P., which is a fund managed by the group as a general partner, are selling a total of 66.78 million H shares of Tsingtao at HK$62 apiece, a 4.7% discount to Monday's close of HK$65.05.

The deal includes sale of 47.59 million H shares, or 3.49% of Tsingtao, held by Fosun Industrial.

Fosun and China Momentum Fund will no longer hold any H shares in Tsingtao on completion of the deal, and the disposal is a normal withdrawal of investment arrangements, the Chinese conglomerate said in a filing to the Hong Kong bourse.

UBS is the placing agent.

($1 = 7.8488 Hong Kong dollars)

(Reporting by Donny Kwok; Editing by Shailesh Kuber)