Fosun International Ltd. is pondering whether to sell French luxury resort chain Club Med as it’s looking to ways to reduce debts, according to a report in Bloomberg.
The Shanghai-based company has been informally fielding inquiries from potential buyers, people knowledgeable about the matter said. Fosun, which owns Club Med through its leisure arm Fosun Tourism Group, could value the resort chain at around $1.5 billion. Shares of Fosum Tourism Group have fallen 19 percent in Hong Kong trading this year, and it suffered a net loss of about $28 million in the first half of 2022.
However, it’s uncertain if Fosun will go forward with any transactions as a representative from the company said it has no intention of selling Club Med.
A Fosun-led consortium bought Club Med in 2015 for about $968 million. The Fosum Tourism Group has since expanded Club Med’s business, including opening three resorts in the first half of this year.