Portugal's Fidelidade calls off IPO of healthcare arm (updated)
23/04/2024 15:56
(Adds detail, background throughout)
By Sergio Goncalves
LISBON, April 23 (Reuters) - Portuguese insurance
company Fidelidade, controlled by China's Fosun 0656.HK , has
decided to abandon a planned listing of its healthcare arm Luz
Saude because of capital markets instability driven by tension
in the Middle East, it said on Tuesday.
Two weeks ago, Fidelidade said it planned an Initial Public
Offering (IPO) of Luz Saude on Lisbon's stock exchange, which
would include selling a minority stake and a capital increase of
100 million euros ($107.03 million).
In its statement on Tuesday it said it had dropped the plan
following an assessment of instability in capital markets,
aggravated by tensions in the Middle East.
"Market conditions to allow a correct valuation of the asset
(Luz Saude) are not met," Fidelidade said, adding the main
global stock indexes had lost value in recent days.
The insurance company said it would maintain its "commitment
to the sustainability and long-term growth of the Luz Saude
business" and would continue to evaluate options to "generate
value".
An IPO would have marked a return of Luz Saude to the stock
market after the healthcare group stopped trading on Euronext
Lisbon in 2018.
Luz Saude's net profit rose 16.4% to 31.3 million euros in
2023, supported by a 11.3% increase in operating income to 667
million euros.
Fidelidade is 85% owned by Fosun International, while
state-owned Caixa Geral de Depositos has the remaining 15%.
Fosun was also studying the potential for a partial IPO of
Fidelidade, probably in 2025, a spokesperson for the insurance
company told Reuters a month ago.
($1 = 0.9343 euros)
(Reporting by Sergio Goncalves;
Editing by Catarina Demony and Barbara Lewis)
((sergio.goncalves@thomsonreuters.com; +351213509204; Reuters
Messaging: sergio.goncalves.reuters.com@reuters.net))