Overseas investment not just about buys
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Cooperation has now become an essential part of Chinese companies' overseas expansion plans, said the CEO of A Capital, the exclusive financial advisor of Fosun, Sunday. The country's largest privately-owned enterprise just completed a path-breaking investment in the world-renowned Club Méditerranée.
Fosun, a company whose business includes everything from medicine to real estate, announced Thursday that it had acquired 7.1 percent share of Club Med, one of the world's biggest resort groups, making the Chinese firm one of Club Med's largest shareholder.
Domestic companies, who used to have more interest in acquisitions overseas in manufacturing and resources, some-times didn't feel welcome because of political and cultural obstacles, said André Loesekrug-Pietri, founder and CEO of A Capital.
"The model we are promoting that we have demonstrated with Fosun and Club Med, doing a minority investment, is very new."
One representative of Fosun is appointed to the board of directors of Club Med at present, and Fosun will help the company without changing its management. It is not seen as an acquisition, just a support," he said.
Fosun is just one of thousands of Chinese firms that are investing abroad. More than half of Chinese companies will increase their overseas investments in the next two to five years, according to a report filed with the China Council for the Promotion of International Trade in April.
The deal took only about three months and was concluded quickly possibly due to Fosun's in-depth knowledge of the property market, an advantage that can help Club Med expand in China.
Fosun also runs several major media outlets, giving Club Med ample channels to promote itself.
"There are very few high-end holiday resorts in China, so the market share for Club Med is very big," said Zhang Ruiting, an investment manager with China International Travel Service, Sunday.
