Wolves safe despite owners Fosun shedding business interests
Fosun remain committed to Wolves despite the company shedding business interests, the Express & Star understands.
The Chinese group is moving to ‘hasten its exits from non-core businesses’ to lower debt and become more sustainable, according to reports in China.
As a result, a number of Wolves fans have become concerned over Wolves’ future with their overseas owners, who bought the club in 2016 for £30million and have helped propel them into the Premier League and, previously, the Europa League.
However, the Express & Star understands that Wolves and subsidiary company Fosun Sports remain a key part of the Fosun International portfolio.
E-sports and other Wolves-related endeavours, including fashion, come under the Fosun Sports umbrella, while in 2021 Fosun Sports invested in North American E-sports brand Evil Geniuses and later that year they received investment from U.S. finance and technology firm, PEAK6 Investments.
Fosun International own business across a variety of industries, including tourism, pharmaceuticals, real estate and financial services, and the company is now aiming to cut its debt by more than £1billion annually ‘in the next two to three years and improve its financial profile’, according to reports.
Co-chairman Wang Qunbin told an earnings briefing last week: “We will exit some non-core businesses while focusing on assets that are sustainable and predictable.
“Fosun plans to develop itself into a more (financially healthy) and sustainable company.”
It was not revealed which assets were to be shelved, but the Express & Star understands the Shanghai-based company regards Wolves as a key asset moving forward.
Co-founder and chairman of Fosun, Guo Guangchang, who has attended several Wolves games this season, said the group will still be expanding profitable enterprises.
He said: “We are still taking an active attitude (towards business expansion).
“We just want to let our investors know that by doing so, we need to have high risk awareness and be enterprising.”
Last week it was revealed Fosun enjoyed a 20 per cent rise in profits in 2023, with industrial operating profits of £540 million.
Revenue also grew by 8.6 per cent to to £21.71billion.
Overseas revenue, including from Premier League Wolves, was up six per cent to £9.77billion.
Interest-bearing debt at the group level, including bank loans and corporate bonds, was down by £1.01billion compared with the end of 2022.
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