Pressure mounts for Wolves owners
Fosun, the owner of Wolverhampton Wanderers is facing further issues as it lost 18% of its value this month.
This drop on Wednesday (14th September) followed the announcement of the divestment of a Chinese pharmaceutical unit resulting in shares being at their lowest point since the end of 2012.
The Financial Times reported in July that Fosun, headed up by Shanghai-based tycoon Guo Guangchang owes around $38bn.
Fosun is also heading to file a law suit against Bloomberg, after it reported that Chinese regulators asked lenders and state-owned firms to inspect their financial risks associated to the conglomerate.
Guo said: “The false reports and infringements of Bloomberg News have seriously hurt Fosun.
“After widespread circulation domestically and abroad, it seriously misled investors and caused abnormal market volatility, which affected the reputation and normal operation for Fosun’s business.”
A spokesperson for Fosun said it did not receive any notice from authorities about the financial exposure requests, according to Bloomberg.
It said the checks by the State-owned Assets Supervision and Administration Commission as “routine information collection work by the Beijing SASAC system, without any specificity”.
In March, in its third season under Fosun ownership, Wolverhampton Wanderers posted a net profit of £18.4m during a heavily impacted period by the pandemic.
Fosun revealed that it had turned equity £126.5m of shareholder loans, effectively writing off the debt the club owed to the owners.
Its subsidiary Fosun Tourism, said revenues were up 130% in the first half of the year for its brands including Thomas Cook, Club Med and Atlantis.