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Wolves owner reportedly selling off assets to reduce its major debts

Wolves owner Fosun is reported to be selling off assets to reduce its major debts.

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Fosun chairman Guo Guangchang

The Chinese group, which bought the Premier League club in 2016 for £30 million, has debts of more than £31 billion.

Fosun, led by chairman and founder Guo Guangchang, is selling its majority shareholding in Shanghai-listed Nanjing Nangang Iron and Steel United.

It will take this year's assets sales for the Hong Kong-listed group, which also owns Thomas Cook and French resort group Club Med, to £4.25bn.

Fosun only divested £88 million of assets in 2021.

It is being hit by the cooling down of China’s economy in the wake of Covid-19.

Fosun is said to be finding that falling assets are hard to sell, including real estate and biopharmaceutical holdings.

Its business interests extend across China, Europe and the United States.

Shares in Fosun International have been on a downward trend this month and are trading near decade lows.

Fosun said last month that its financial position remains “sound and healthy”.

Mr Guangchang is also reported to be in talks to secure a £1.8bn syndicated loan led by state-owned Industrial and Commercial Bank of China, the county’s biggest bank by assets, and China Minsheng Bank, one of China’s largest privately owned lenders.

Fosun reached a deal in March to sell shares in its fashion division, Lanvin Group.