Fosun buys 7pc Club Med stake
Tuesday, 15 June 2010
PARIS, June 14 (AFP): Chinese investment company Fosun bought a seven-per cent stake in French leisure group Club Med, which is looking to tap the growing Chinese tourism market, the two companies said Sunday.
"Fosun has acquired 7.1 per cent of Club Med's share capital, and has become one of Club Mediterranee's largest strategic investors," they said in a joint statement.
They did not say how much the Chinese group paid but the stake would be worth 25.6 million euros (31 million dollars), according to Club Med's market capitalisation at the close of markets Friday.
"In the very promising Chinese market, Club Mediterranee wants to become the leading operator of upscale all-inclusive resorts, with the objective of making China its second largest market within the next five years," they added.
China's tourism revenue last year totalled one trillion yuan (146 billion dollars, 121 billion euros), according to the statement.
The companies said they had launched "a strategic partnership agreement in order to build comprehensive cooperation in upscale resort construction and operation as well as developing global business synergies."
Club Med said in February that it planned to open a ski village in November at the Mountain Yabuli resort in Heilongjiang province, northeastern China -- its first Chinese venture, through a deal with Melco China Resorts.
It said it wants to build five such sites by 2015.
"On a mid-term basis, the parties will cooperate to identify opportunities for the opening of new resorts, through greenfield development or by taking over existing upscale resorts," the companies said.
Club Med said Friday it had returned to profit in its first half despite a flat European holiday market, with a net profit of three million euros in the six months to March 2010.
The French company is credited with inventing the "all-inclusive" holiday model 60 years ago. It now has holiday resorts in 40 countries.
Fosun is China's biggest private conglomerate, listed in Hong Kong, with investments in pharmaceuticals, property development, steel, mining, retail, services and strategic investing.
"Fosun has acquired 7.1 per cent of Club Med's share capital, and has become one of Club Mediterranee's largest strategic investors," they said in a joint statement.
They did not say how much the Chinese group paid but the stake would be worth 25.6 million euros (31 million dollars), according to Club Med's market capitalisation at the close of markets Friday.
"In the very promising Chinese market, Club Mediterranee wants to become the leading operator of upscale all-inclusive resorts, with the objective of making China its second largest market within the next five years," they added.
China's tourism revenue last year totalled one trillion yuan (146 billion dollars, 121 billion euros), according to the statement.
The companies said they had launched "a strategic partnership agreement in order to build comprehensive cooperation in upscale resort construction and operation as well as developing global business synergies."
Club Med said in February that it planned to open a ski village in November at the Mountain Yabuli resort in Heilongjiang province, northeastern China -- its first Chinese venture, through a deal with Melco China Resorts.
It said it wants to build five such sites by 2015.
"On a mid-term basis, the parties will cooperate to identify opportunities for the opening of new resorts, through greenfield development or by taking over existing upscale resorts," the companies said.
Club Med said Friday it had returned to profit in its first half despite a flat European holiday market, with a net profit of three million euros in the six months to March 2010.
The French company is credited with inventing the "all-inclusive" holiday model 60 years ago. It now has holiday resorts in 40 countries.
Fosun is China's biggest private conglomerate, listed in Hong Kong, with investments in pharmaceuticals, property development, steel, mining, retail, services and strategic investing.