Fosun tourism arm ‘set for $500m listing’

Fosun tourism arm ‘set for $500m listing’

Chinese conglomerate Fosun International is reported to be in talks with banks to list its tourism business, which includes Club Med, to raise at least $500 million.

Fosun Tourism & Culture Group includes a Chinese joint venture with Thomas Cook and a luxury hotel in Hainan province as well as Club Med.

Shanghai-based Fosun is considering spinning off the unit as early as next year and is likely to pick Hong Kong as the listing venue, Thomson Reuters publication IFR reported sources as saying.

Fosun declined to comment when contacted by Reuters.

Fosun, co-founded by Chinese billionaire Guo Guangchang, bought Club Med for $1 billion in 2015 after a protracted bid battle.

Fosun divides its businesses into “Health”, or pharmaceutical and medical-related, “Wealth” for its financial operations, and “Happiness” for its tourism, leisure and consumer units.

The Happiness unit reported first half profits of 516 million yuan (£58.3 million) from sales of 6.53 billion yuan.

Fosun shares were trading at HK$15.78 on Thursday afternoon, giving the company a market capitalisation of HK$135 billion.

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