Fosun International Ltd (復星國際) is considering strategic options for its French luxury resort chain Club Med SAS as the Chinese conglomerate explores ways to cut debt, people with knowledge of the matter said.
The Shanghai-based group has been informally fielding interest from potential buyers of Club Med, the people said on the condition of anonymity.
It could seek to value the business at about US$1.5 billion in any transaction, the people added.
Photo: Reuters
Fosun owns Club Med through its listed leisure arm Fosun Tourism Group (復星旅遊文化集團). Fosun Tourism shares have fallen 19 percent in Hong Kong trading this year, giving it a market value of about HK$10.5 billion (US$1.3 billion).
Club Med is among a number of assets being reviewed by Fosun and there is no certainty it would decide to proceed with any transaction, the people said.
A representative for Fosun said the group has “no plans” to sell Club Med.
Club Med is known for its all-inclusive resorts offering a range of leisure activities from fine dining to yoga, scuba diving and baby gym classes. It operates nearly 80 resorts globally in destinations including the French Alps and the Maldives, according to its Web site.
A consortium led by Fosun bought Paris-based Club Med in a 2015 deal valued at about 939 million euros (US$969 million), beating out Italian investor Andrea Bonomi in a bidding war that lasted for more than a year.
The group expanded Club Med’s business in China before folding it into Fosun Tourism with other business assets.
Fosun, which also owns French fashion house Lanvin, told analysts last month that it is targeting selling as much as US$11 billion of assets in the next 12 months.
It recently agreed to sell a stake in the parent company of Nanjing Iron & Steel Co (南京鋼鐵) for 15 billion yuan (US$2.1 billion) as well as a HK$4.4 billion disposal of its holdings in Zhaojin Mining Industry Co (招金礦業).
The Chinese group has told advisers that its domestic food and beverage business is also for sale. It is also weighing strategic options for British baby stroller brand Silver Cross, as well as its investment in electric vehicle battery maker JEVE, other sources said.
Fosun has separately been exploring a transaction involving the Bund Finance Center (外灘金融中心) in Shanghai, the people said.
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