China's Fosun explores sale of Atlantis Sanya luxury resort, sources say

Fosun Tourism

05/03/2024 05:38

By Julie Zhu and Kane Wu
       HONG KONG, March 5 (Reuters) - Fosun International
 0656.HK  is looking to sell all or part of its luxury resort
Atlantis in southern China as part of its efforts to reduce
debt, three people with knowledge of the matter said.
    Located on Hainan island, known as China's Hawaii, in the
seaside city of Sanya, the integrated resort spans an area
equivalent to 66 soccer pitches. It boasts a hotel with more
than 1,300 guest rooms - some with views of underwater marine
life - as well as a water park, an aquarium and a shopping mall.
    Fosun, known for once being one of China's most
acquisition-hungry conglomerates, has sent information to
prospective buyers and advisers and has been in informal
discussions with them in recent months, said two of the people.
    A potential deal value for Atlantis Sanya could not be
immediately learned. Fosun said in 2018 it had invested 11
billion yuan ($1.5 billion) in the resort.
    The sources declined to be identified as the discussions
were confidential. Fosun and its Hong Kong-listed unit Fosun
Tourism Group  1992.HK , which owns the resort, did not
immediately respond to requests for comment.
    A sale would be further evidence that the conglomerate,
which had some $30 billion in debt as of last June, is willing
to roll back its presence in the tourism sector. Fosun Tourism's
other main asset is Club Med and sources have said that the
conglomerate is exploring the sale of a minority stake in the
luxury resort chain.
    According to two of the sources, Fosun has targeted mainly
Chinese state-backed firms and deep-pocketed investors from the
Middle East as potential buyers. 
    It is open to selling the whole business or the luxury hotel
alone, said one of them.
    Fosun Tourism, which has a market cap of about HK$5.2
billion ($665 million), accounts for 9% of Fosun International's
overall revenue. The conglomerate's other businesses span
healthcare, financial services and property.

($1 = 7.1993 Chinese yuan)
($1 = 7.8252 Hong Kong dollars)

 (Reporting by Julie Zhu and Kane Wu; Editing by Edwina Gibbs)
 ((julie.zhu1@thomsonreuters.com;))