The Chinese tourism company, which is Thomas Cook’s largest shareholder, has approached the company over a potential takeover. Read more: Fosun lines up bid for Thomas Cook tour operating business “There can be no certainty that this approach will result in a formal offer,” Thomas Cook said in a statement this morning.
A deal would see the Hong-Kong listed company, which owns Club Med, take control of the operating business which produces around £7.4bn in revenue a year.
However, Fosun could not buy Thomas Cook’s airline business due to European Union rules on aviation ownership.
The 178-year-old British travel group is already eyeing a sale of its airline operations, which analysts estimate could be worth around £1bn.
Thomas Cook has also revealed last month that it received a takeover approach for its Nordic operations from private equity group Sunweb. Read more: Triton in talkes with Thomas Cook over offer for Nordic arm
The company is facing financial struggles and recently reported a half year loss of £1.5bn, driven by a £1.1bn goodwill writedown.
Fosun, which owns an 18 per cent stake in the group, has backed the group by increasing its stake in recent months.