Singapore’s CapitaLand Investment Ltd is in advanced talks to buy a minority stake in French luxury resort chain Club Med SAS from its Chinese owner Fosun International Ltd, according to people with knowledge of the matter.

The real estate investment firm, part of Temasek Holdings Pte Ltd-owned conglomerate CapitaLand Group Pte Ltd, is seeking to acquire from 20% to 30% in the hotelier for several hundred million euros, the people said, asking not to be identified because the information is private. The Singaporean firm has emerged as the likeliest buyer of the stake, after outbidding other rivals including private equity firms, the people said.

Talks are still ongoing and no final decisions have been made, the people said.

Shares of CapitaLand Investment rose as much as 2.8% to the highest intraday level since Feb 2. Fosun Tourism’s stock jumped as much as 9.3%, the steepest gain in more than two months. Fosun International rose 1.3% before paring gains.

Fosun International has stepped up efforts to lower its debt burden, including asset disposal and reduced borrowing. Progress on that front has helped it become one of the few Chinese conglomerates to witness a recovery in global investor confidence in recent years.

Fosun, backed by billionaire Guo Guangchang, owns Club Med through its listed leisure arm Fosun Tourism Group. Club Med is known for its all-inclusive resorts offering a range of leisure activities from fine dining and massages, to yoga, scuba diving and baby gym classes. It operates over 60 resorts globally in destinations including the French Alps and the Maldives, according to its website.

CapitaLand Investment, which was listed in late-2021 as part of a major restructuring at CapitaLand Group, has been facing market pressure over its sizable investments in China, which is experiencing a major property downturn. CapitaLand Group is owned by Singapore state investor Temasek, which also holds a majority stake in the investment arm.

A representative for CapitaLand Investment and Fosun Tourism declined to comment, while Fosun International didn’t immediately respond to requests seeking comment.

  - Bloomberg