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06 Mar Chinese conglomerate Fosun’s tourism unit says it is ‘financially sound’ amid reports of Atlantis Sanya stake sale
“Fosun Tourism is always reviewing and optimising its business portfolio, focusing on the growth of its core businesses and strengthening its operational capabilities,” Fosun Tourism said in a written response to the Post.
“Currently, [Fosun Tourism] is operating well, and it is financially sound.”
Fosun International, whose businesses include tourism, real estate and financial services, had recorded a total revenue of 97.1 billion yuan (US$13.48 billion) as of the end of June last year. Its “happiness” segment, covering brands, tourism and leisure, accounted for more than 44 per cent of total revenue, according to the group’s interim report.
Fosun Tourism’s Club Med to build resorts in Hainan as Chinese tourists return
Fosun Tourism’s Club Med to build resorts in Hainan as Chinese tourists return
In January, the company proposed the sale of a 5.6 per cent stake in Portuguese lender Banco Commercial Portugues to bolster its working capital. It was reportedly in talks in February to sell a minority stake in Club Med, another luxury resort operator, with a targeted valuation of US$800 million for the whole business. Meanwhile, Fosun International is also currently mulling the sale of its minority stake in Ageas, Belgium’s largest insurer.
According to Fosun International’s interim report, as of the end of June last year, its ratio of total debt to total capital decreased to under 52 per cent from 53 per cent as of the end of 2022.
The conglomerate said that during the six months ended on June 30 last year, it redeemed onshore bonds worth 6.73 billion yuan, as well as offshore debt of more than US$2.7 billion. The company also said that as of the end of June last year, it had no material offshore bonds due within one year.
Fosun International to sell stakes in four companies for US$975 million
Fosun International to sell stakes in four companies for US$975 million
S&P Global lifted the company’s rating outlook to “stable” and said in a report last May that Fosun International could reduce its debt burden through asset sales and support from domestic banks.
With a total floor area of 540,000 square metres, Atlantis Sanya has 1,314 hotel rooms and offers entertainment facilities that include aquariums, restaurants and shopping malls, according to its website.
Fosun Tourism is listed in Hong Kong and had a market value of HK$5.38 billion (US$687.7 million) as of Wednesday.