CHINESE conglomerate Fosun International is exploring the sale of a minority stake in its luxury resort chain Club Med, targeting a valuation of US$800 million for the whole business, according to people with knowledge of the matter.

Fosun has been in informal discussions with potential buyers and advisers about the sale in recent months, but no firm bid has emerged, said the sources.

Fosun could sell as much as a 30% stake in Club Med, said one of the sources.

In November 2022, Bloomberg reported Fosun was informally fielding interest in Club Med based on a full-business valuation of US$1.5 billion. At the time, Fosun said it had “no plans” to sell the all-inclusive resort operator.

Its more recent exploration of a sale of minority stake comes as the property-to-health-care conglomerate has doubled down on divesting non-core assets amid investor concerns about its debt levels.

The conglomerate said last month it planned to sell a 5.60% stake in Portuguese lender Banco Comercial Portugues for 235.19 million euros (US$256.07 million) to boost its working capital.

(SD-Agencies)