CapitaLand in Advanced Talks to Acquire Minority Stake in Club Med from China’s Fosun International

Fosun from China is negotiating to sell a portion of Club Med to CapitaLand in Singapore. The company, which is a component of the CapitaLand Group owned by Temasek Holdings, is aiming to purchase between 20 and 30 percent of the hotel business.

CapitaLand Investment of Singapore is reportedly in high-level negotiations to acquire a minority interest in the luxury resort chain Club Med. The seller is its current Chinese owner, Fosun International, as per individuals familiar with the situation.

The property investment company, a subsidiary of CapitaLand Group owned by Temasek Holdings, is looking to purchase between 20 and 30 percent of the hotelier's shares, a deal that could be worth hundreds of millions of euros, according to sources who wished to remain anonymous as the information is confidential. The Singapore-based company has risen to become the most probable purchaser after offering a higher bid than other competitors, including private equity firms, the sources revealed.

Discussions are still in progress, and no ultimate conclusions have been reached yet, according to sources.

CapitaLand Investment's shares experienced a boost of up to 2.8 per cent, reaching their highest point in a day since February 2, before ending the day 2.4 per cent higher. Fosun Tourism saw its stock leap as high as 9.3 per cent, marking the biggest increase in over two months, but it ended the day with a modest increase of 1.6 per cent. Fosun International's shares climbed 1.3 per cent but ended the day at the same value as they started.

Fosun has intensified its strategies to decrease its debt load, which include selling off assets and minimizing borrowing. These advancements have contributed to it being one of the rare Chinese conglomerates that have seen a resurgence in worldwide investor trust in the past few years.