Freshfields advises Fosun Tourism Group on its proposed privatisation

Global law firm Freshfields is advising Fosun Tourism Group (‘FTG’) on its proposed privatisation from the Hong Kong Stock Exchange. Under the proposed transaction, FTG will buy-back all its shares, other than those held by its controlling shareholders, Fosun International Limited and Fosun Holdings Limited (‘Controlling Shareholders’), by way of a scheme of arrangement. The proposed transaction is the first privatisation by way of a share buy-back structured through a scheme of arrangement in the Hong Kong market.

The total consideration is approximately HK$2.1 billion (approximately US$ 270 million) in cash.

Upon the scheme of arrangement becoming effective, FTG will be 100% owned by the Controlling Shareholders and will be delisted from the Hong Kong Stock Exchange. The proposed privatisation is subject to various conditions, including approval by independent shareholders and Cayman court sanction.

FTG is one of the leading leisure-focused integrated tourism groups, and its principal activities are (i) the Club Med resort operation business and other relevant business such as transportation service, resort construction service, and youth play and learning service; (ii) Atlantis Sanya; (iii) Vacation Asset Management Center; and (iv) Foryou Club and other services.

The Freshfields team advising on the transaction was led by partner Philip Li, with support from senior associates Clara Chang and Dickson Chan and associates Liam Li, Twinkle Chow and Gabriel Chu. Partner Thomas Ng, counsel Don Methven and associates Jacqueline Cheung and Tiffany Lam are advising on the financing in connection with the transaction, counsel Stephanie Chiu and associate Shirley Lam are advising on employment issues.