Fosun, the Chinese owner of Club Med in particular, announced the resignation of two of its managing executives. These unexpected departures raise questions about their reasons and their ramifications, just when the conglomerate was about to increase the capital of another major French tourism actor.
While health reasons have been invoked to justify this reorganization, several observers wonder about possible links with Fosun's massive investment strategy abroad. The conglomerate, founded in 1992 by students from the Shanghai-based Fudan University, has invested more than $15 billion in international buyouts and takeovers; China has faced a significant drop in its reserves of dollars in recent months and has been fighting downward pressure on its currency. Authorities are currently seeking to slow down capital outflows from China. Moreover, the group has accumulated billions of dollars in debts to finance its purchases abroad: this has recently led to a deterioration of its debt by rating agencies even though Fosun published a net profit of not less than €1.4 billion in the last fiscal year (+28%).
However, no announcement concerning ongoing negotiations for the takeover by Fosun of a part of Compagnie des Alpes (operator of ski areas and amusement parks) or related to a possible increase in capital has followed these upheavals in the Chinese group's management structure. The impact of this reorgabnization, and its causes, remain unresolved issues. Answer in the coming weeks?
- Fosun's founder is missing
- Chinese partners: at the top of the list for hotel development
- Club Med: Andrea Bonomi outbids Fosun
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