Date: 18 September 2024
Broker: Maybank Research Pte Ltd

Advanced Negotiations for Club Med Stake

CapitaLand Investment (CLI) is reportedly in advanced talks to acquire a minority stake in the French luxury resort chain, Club Med SAS. This deal would involve purchasing a stake from the Chinese owner, Fosun International, which currently controls Club Med. The potential stake acquisition is between 20% to 30%, valued at several hundred million euros.

Positioning as the Leading Buyer

CLI has emerged as the most likely buyer for the Club Med stake, having outbid other competitors, including various private equity firms. CLI’s position as the frontrunner demonstrates its aggressive approach to expanding its portfolio in the luxury resort sector. However, despite being in advanced talks, no final decisions have been made, and the deal remains subject to further negotiations.

Strategic Implications

This potential investment aligns with CLI’s broader strategy of expanding its real estate and hospitality portfolio. Club Med, known for its luxury resorts, would provide CLI with a strong foothold in the global tourism and leisure market. This acquisition, if completed, could enhance CLI’s asset base and support its growth ambitions in the high-end resort sector.