Fosun, Ardian withdraw Club Med bid
Chinese conglomerate Fosun International and Ardian Private Equity have withdrawn their takeover bid for French-based vacation resorts operator Club Méditerranée (Club Med).
The move comes after the French financial markets regulator, Autorité des Marchés Financiers (AMF), gave the go-ahead to a rival offer made by Investindustrial, a private equity fund managed by Italian businessman Andrea Bonomi.
Bonomi, who owns about 11% of Club Med, offered EUR21 ($28) per share for Club Med last month, valuing the entire company at EUR790 million. The AMF said Investindustrial's bid was in line with the market rules on Wednesday.
Fosun said in a filing to the Hong Kong stock exchange that it would continue "exploring any potential options which would serve Fosun's and Club Med's best interest," along with Ardian.
Fosun and Ardian - formerly Axa Private Equity - first announced the privatization bid of Club Med in May last year and later increased the bid to EUR17.50 per share from initial EUR17, valuing the resort chain at EUR557 million.
The revised offer received support from Club Med's board but the deal was delayed when minority shareholder's association ADAM and Charity Investment Asset Management (CIAM) filed complaints with AMF, arguing that the proposed acquisition price was too low.
Fosun and Ardian planned to open Club Med as a joint venture, each owning 46% with the balance held by company's managers. Henri Giscard d' Estaing would remain CEO.
Fosun still retains 9.1% of Club Med while Ardian has 9%. Hong Kong-based private equity firm A Capital brokered the deal that saw Fosun buy a 7.1% stake in Club Med in 2010, as well as participating as a co-investor.
Fosun's strategic support has helped boost the company's presence in China, where it has opened two properties. Club Med operates in 40 countries through its sales and marketing activities and the operation of its 66 holiday villages. Group revenue totaled EUR1.4 billion for the year ended October 2013, down 3.5% on the previous year.
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