Fosun International Ltd. is considering strategic options for 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, asking not to be identified because the information is private. It could seek to value the business at around $1.5 billion in any transaction, according to the people.
Fosun, backed by billionaire Guo Guangchang, owns Club Med through its listed leisure arm Fosun Tourism Group. Shares of Fosun Tourism have fallen 19% in Hong Kong trading this year, giving it a market value of about HK$10.5 billion ($1.3 billion).
Club Med is among a number of assets being reviewed by Fosun, and there’s no certainty it will decide to proceed with any transaction, the people said. It’s unlikely to do a deal unless it can achieve a good price, the people said. A representative for Fosun said the group has “no plans” to sell Club Med.
Read original article