Fosun to list tourism business in $500 million-plus IPO
Chinese conglomerate Fosun International is in talks with investment banks to list its tourism business to raise at least $500 million, according to people familiar with the situation.
Fosun Tourism & Culture Group, Fosun's tourism unit, includes resort operator Club Med, a Chinese joint venture with tour operator Thomas CookBSE 1.58 % Group and the luxury Atlantis Resort Hotel in Sanya, Hainan province.
The Shanghai-based parent is considering spinning off the unit as early as next year and is likely to pick Hong Kong as the listing venue, according to the people.
The company has not decided on the fundraising size yet but two of the people said the deal would raise at least USD 500 million.
In the first six months of this year, Fosun's "Happiness Ecosystem", which comprises its tourism and leisure and consumer and lifestyle businesses, posted a profit of RMB 516m (USD 78 million) on revenues of RMB 6.5 billion, up 37 per cent and 12 per cent respectively from a year earlier, according to the parent's interim results.
Fosun did not immediately respond to a request for comment for the potential spin-off.
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