Fosun in Negotiations to Sell Club Med Stake to CapitaLand of Singapore

CapitaLand Investment is negotiating to acquire a 20-30% stake in Club Med from Fosun International, outbidding competitors. Ongoing talks have resulted in stock price increases for both firms.

CapitaLand Investment in Talks to Acquire Stake in Club Med

Singapore’s CapitaLand Investment is reportedly in advanced negotiations to purchase a minority stake in luxury resort chain Club Med from its Chinese parent company, Fosun International. Sources familiar with the matter indicate that CapitaLand is looking to acquire between 20 to 30 percent of the hotelier, with the anticipated investment amounting to several hundred million euros.

Competitive Bidding and Market Reactions

CapitaLand has emerged as a leading contender for the stake, successfully outbidding various private equity rivals. Following news of these discussions, shares of CapitaLand Investment rose by 2.4 percent, reaching their highest point since early February. Meanwhile, Fosun Tourism’s stock also saw a notable increase, jumping as much as 9.3 percent during the trading session.

Fosun’s Strategic Asset Management

Fosun International has been actively working to reduce its debt through asset sales and limited borrowing. These strategic moves have contributed to a renewed global investor confidence, distinguishing Fosun as one of the few Chinese conglomerates to successfully navigate recent economic challenges.

Source : China’s Fosun in talks to sell stake in Club Med to Singapore’s CapitaLand