(Yicai) May 28 -- Fosun International is selling German private bank Hauck Aufhäuser Lampe Privatbank to Holland’s ABN Amro Bank for EUR672 million (USD730 million) as part of the Chinese investment conglomerate’s strategy to slim down its asset portfolio and raise cash.

The sale will enable Fosun International to streamline its operations, improve liquidity and focus on asset-light businesses, the Shanghai-based company said.

The transaction represents a rate of return of around 14 percent, it added. The funds will be used to supplement working capital. The transaction is not expected to impact on the company’s performance this year.

Fosun International bought Hauck Aufhäuser in September 2016 for EUR210 million (USD228 million) to expand the firm's financial footprint in Europe, and particularly Germany. In October 2021, Hauck Aufhäuser acquired another private German bank, Bankhaus Lampe, for an undisclosed amount and the lender was renamed Hauck Aufhäuser Lampe.

230-year-old HAL is one of the few independent full-license banks in Germany, Austria and Switzerland, which engages in private and corporate banking as well as investment activities. The Frankfurt-based lender logged net profit of EUR68 million (USD74 million) in 2022 and 2023. As of the end of last year, it had total assets of EUR11.8 billion and net assets of EUR676 million.

Fosun International’s share price [HKG: 0656] closed down 0.4 percent at HKD4.56 (USD4.24) today.

Editor: Kim Taylor