Fosun Gets Approval to Spin Off Tourism Unit Including Club Med
(Bloomberg) -- Fosun International Ltd. received approval from the Hong Kong stock exchange to spin off its tourism and hotels unit that includes Club Med SAS, as the Chinese conglomerate seeks to expand its travel business globally.
Fosun did not give a timeline for the spin-off and said that it was not assured, according to a statement to the stock exchange late Wednesday. IFR Asia reported earlier that Fosun was aiming for a listing valued at around $500 million and had appointed Citic CLSA Capital Markets Ltd., Citigroup Inc. and JPMorgan Chase & Co. for the IPO.
Fosun has been assembling a tourism and leisure empire over the last few years, scooping up French resort operator Club Med for $1.3 billion in 2015. The company said in May it is looking to increase its foothold in North America through acquisitions and launching a new line of resorts in China.
In addition to Club Med, the tourism unit includes luxury hotel development Sanya Atlantis and other tourism-related products and services. It also has a joint venture with British travel agency Thomas Cook Group Plc in China. Fosun built Atlantis for $1.6 billion on China’s southern island of Hainan, where the government has started a push to promote tourism.
Qian Jiannong, senior vice president of Fosun International, said in a May interview that trade tensions between China and the U.S. won’t affect demand for travel and vacations.
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