CapitaLand in talks to acquire stake in Club Med for several hundred million euros, sources say
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CapitaLand Investment is seeking to acquire a stake of 20 per cent to 30 per cent in the resort chain Club Med, the sources said.
PHOTO: CLUB MED BINTAN ISLAND
Hong Kong – CapitaLand Investment is in advanced talks to buy a minority stake in French luxury resort chain Club Med SAS from its Chinese owner Fosun International, according to people with knowledge of the matter.
The Singapore-listed real estate investment company is seeking to acquire a stake of 20 per cent to 30 per cent in the hotelier for several hundred million euros, the people said, asking not to be identified because the information is private.
CapitaLand Investment has emerged as the likeliest buyer for the stake after outbidding other rivals including private equity firms, the people said.
Talks are still ongoing and no final decisions have been made, they said.
Shares of CapitaLand Investment on Sept 17 rose as much as 2.8 per cent to the highest intraday level since Feb 2. Fosun Tourism’s stock jumped as much as 9.3 per cent, the steepest gain in more than two months. Fosun International rose 1.3 per cent before paring gains.
Fosun International has stepped up efforts to lower its debt burden, including asset disposal and reduced borrowing. Progress on that front has helped it become one of the few Chinese conglomerates to witness a recovery in global investor confidence in recent years.
Fosun, backed by billionaire Guo Guangchang, owns Club Med through its listed leisure arm Fosun Tourism Group.
Club Med is known for its all-inclusive resorts offering a range of leisure activities from fine dining and massages to yoga, scuba diving, and baby gym classes. It operates over 60 resorts globally in destinations including the French Alps and the Maldives, according to its website.
CapitaLand Investment, which was listed in late-2021 as part of a major restructuring at CapitaLand Group, has been facing market pressure over its sizeable investments in China, which is experiencing a major property downturn.
CapitaLand Group is backed by Singapore’s investment company, Temasek, which also holds a majority stake in the investment arm.
A representative for CapitaLand Investment and Fosun Tourism declined to comment, while Fosun International did not immediately respond to requests seeking comment. BLOOMBERG
