Fosun to list Club Med in Hong Kong, seeks up to US$700mil

HONG KONG: Fosun International plans to float its Club Med holiday business in Hong Kong and raise up to US$700mil, sources said, three years after it won the global resorts operator in a long-running takeover saga.

Its unit Fosun Tourism Group, which includes Club Med as well as a luxury resort in the southern Chinese seaside city of Sanya, did not give details of the share offering in a prospectus released late on Monday.

The sources, who declined to be named because the details of the deal are not yet public, said the company aimed to raise between US$500mil and US$700mil in the IPO later this year.

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Tourism is a key profit growth driver for its parent, Fosun International, which won con-

� trol of Club Med in 2015 for 939mil after what was then France’s longest takeover saga lasting almost two years.

Fosun reorganised its businesses in 2016, creating Fosun Tourism Group and paving the way for the latter’s listing plan.

Club Med now operates in more than 40 countries and has resorts in more than 26 countries and regions, according to the prospectus. Fosun was co-founded by Guo Guangchang, China’s self-styled version of American billionaire investor Warren Buffett.

Like other acquisitive Chinese conglomerates, Fosun has faced increased regulatory scrutiny of its debt-fuelled, big-ticket foreign deals and is now pursuing a development path more aligned with government priorities.