CapitaLand Investment (SGX:9CI) is negotiating to acquire a 20% to 30% stake in French luxury resort chain Club Med SAS from its Chinese owner Fosun International (HKG:0656), Bloomberg reported Tuesday, citing sources familiar with the matter.

The transaction, reportedly valued at "several hundred million euros," positions CapitaLand as the leading bidder among competitors. The discussions are ongoing, and no final agreements have been reached, the report said.

Fosun International, working to reduce its debt, owns Club Med through its Fosun Tourism Group, which operates over 60 resorts worldwide, according to the report.

CapitaLand Investment, part of the Temasek Holdings-owned CapitaLand Group, is seeking to diversify its portfolio amid market pressures related to its investments in China, Bloomberg said.

The news outlet said a representative for CapitaLand Investment and Fosun Tourism declined to comment, while Fosun International did not immediately respond to requests for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Price (HKD): $2.97, Change: $+0.060, Percent Change: +2.06%