CapitaLand in talks to acquire minority stake in Club Med
CapitaLand Investment is in advanced talks to acquire a minority interest in French luxury hotel establishment Club Med from its Chinese operator Fosun International, according to persons with information of the issue.
CapitaLand Group is operated by Temasek, which also holds a majority risk in the investment arm.
Conversations are still progressing and no decisions have been made, the people explained.
A spokesperson for CapitaLand Investment and Fosun Tourism refused to comment, whilst Fosun International didn’t quickly reply requests seeking remark.
CapitaLand Investment, which was listed in late-2021 as part of a major rebuilding at CapitaLand Group, has been facing market pressure over its big investments in China, and that is having a huge property recession.
Fosun International has ascended up attempts to decrease its debt difficulty, including asset disposal and decreased loaning. Development on that particular front has actually helped it turn into one of minority Chinese empires to witness a healing in international investor assurance in recent years.
The Singaporean firm has emerged as the likeliest buyer for the stake right after outbidding other challengers involving private equity firms, the people stated.
Fosun, backed by billionaire Guo Guangchang, owns Club Med through its listed recreation arm Fosun Tourism Group. Club Med is known for its total hotels offering a range of recreation from great dining and massages to yoga exercise, scuba diving, and infant physical education. It manages over 60 resorts globally in places featuring the French Alps and the Maldives, according to its website.
The realty investment company, section of Temasek Holdings-owned conglomerate CapitaLand Group, is seeking to obtain from 20% to 30% in the hotelier for a number of hundred million euros, the people said, demanding not to be identified due to the fact that the info is confidential.
