Fosun Group, the Shanghai-based conglomerate backed by billionaire Guo Guangchang, is folding tourism and entertainment assets Thomas Cook Group Plc and Club Mediterranee SA into a new entity called Fosun Tourism and Culture Group.
The new company was registered in September, and the changes are part of Fosun’s restructuring, the conglomerate said in a statement posted to its WeChat account late Tuesday.
The financial services, pharmaceuticals, leisure and property group is restructuring some assets after announcing more than $15 billion in overseas acquisitions since 2010 through August. Fosun said in August it was preparing to sell as much as 40 billion yuan ($5.8 billion) in assets as it focuses on raising its credit rating to above junk. Guo said last week the company’s
Thomas Cook, Europe’s second-largest tour operator, has said it plans to make China a “substantial” part of its business in a bet that the world’s largest outbound tourism market can help make up for weakness in Europe, where travel has been depressed by terror attacks and the U.K.’s vote to leave the European Union. Fosun said it expects the number of Chinese traveling outside the country to grow by as much as 20 percent annually.
©2016 Bloomberg L.P.
This article was written by Bloomberg News from Bloomberg and was legally licensed through the NewsCred publisher network.