HONG KONG, Feb. 27, 2018 /PRNewswire/ -- Fosun, one of the world's leading family-focused multinational companies, signed on Feburary 26 (Brazilian local time) an agreement to acquire Guide Investimentos, a fast-growing Brazilian institutional brokerage and wealth management firm based in Sao Paulo. Fosun will pay R$170 million (equivalent to US$52 million / HK$403 million) for this acquisition, and additional R$120 million (equivalent to US$37 million / HK$284 million) depending of the company's future performance.
Guide Investimentos has more than 50 years of history in the market and is a subsidiary of Banco Indusval S.A, a Brazilian bank, which will remain with up to 20% stake in the company. In the last five years, Guide has been expanding strongly on the back of its offline and online financial distribution capabilities, as well as institutional brokerage activity.
The acquisition is consistent with Fosun's strategy to invest and build operations in emerging countries, particularly in Latin America. Building upon the successful acquisition of local asset management company Rio Bravo in 2016, Fosun's acquisition of Guide constitutes a second milestone in the creation of a solid and innovative Brazilian Financial Group platform, serving the country's families and institutions with accessible investment products and sound investment strategies.
Guide's strategic focus on technology and innovation in distribution of financial will be coupled with Fosun's strategy of combining China's growth momentum with global resources. According to Mr. Alex Gong, Global Partner & Executive Director of Fosun, "We are pleased with the investment into Guide Investimentos, a leading Brazilian financial distribution company. As a value investor, Fosun's continued investment in Brazil reflects our long-term development strategy in Latin America and Brazil market. For us, serving the world's family clients with top-quality goods and services is our core mission and Guide is another key addition to our global platform. The Brazilian families have growing aspirations for quality and accessible financial products; we see Guide playing a key role in this opportunity."
"We always wanted a partner that could reinforce the non-bank DNA of Guide, invest in its technology capacity and bring a global view to the investments of Guide's clients," says Jair Ribeiro, CEO of Banco Indusval. Still according to Jair Ribeiro, "Guide's growth in the last few years has propelled the company to 50.000 clients and today's agreement with a major global financial partner like Fosun was always our planned next step."
"Today's agreement represents a new phase for Guide. We are building upon our long-standing commitment to have the best financial products to our clients and invest further in having the best investment experience in the market," says Aline Sun, Director of Guide.
Completion of the transaction is pending approval from the Brazilian Central Bank and is expected to close in 1H 2018.
About Fosun Group
Founded in 1992, Fosun is a family-focused multinational company. Fosun International Limited has been listed on the main board of the Hong Kong Stock Exchange (00656.HK) since 2007. Fosun's total assets as at June 30, 2017 exceed RMB500 billion. With its roots in China, and through technology and innovation, Fosun's mission is to create customer-to-maker (C2M) ecosystems in health, happiness and wealth, providing high-quality products and services for families around the world.
About Guide Investimentos
Guide Investimentos is a fast-growing financial distribution company, catering to both individuals and institutional investors in the Brazilian financial market. Through offline and online channels, Guide serves today more than 50,000 clients in all asset classes.
About Banco Indusval
Banco BI&P is a Brazilian bank that uses its 50-year experience in the financial market to position itself as an innovative financial institution, focused on corporate credit in local and foreign currency, fixed income and corporate finance for large and midsized companies.