Rival bidder emerges for Fosun, Ardian target Club Med

The vacation resort operator said in a statement that it had given Investindustrial access to its books but added that it did not amount to an opinion on any potential bid that might be submitted.

Fosun and Ardian - formerly Axa Private Equity - made a joint offer to buy Club Med for around EUR556 million ($757 million) just over a year ago. The two investors - acting via investment vehicle Gaillon Invest - later raised their offer to EUR557 million.

However, the takeover was delayed after minority shareholder's association ADAM and Charity Investment Asset Management (CIAM) filed complaints with French regulators, arguing that the proposed acquisition price of EUR17.50 ($23.70) per share was too low. The Autorité des Marchés Financiers decided not to rule on shareholder opposition to the deal before mid-March this year.

Last week AMF gave Investindustrial until the end of June to make a rival bid for Club Med. It also said it would not set a closing date for an offer from Gaillon Invest until Investindustrial had decided whether to make a counter bid. The regulator had asked Bonomi for clarity over his intentions towards Club Med after one of his funds, Strategic Holdings, became a top shareholder in company last month with a stake of more than 10%.

Gaillon Invest has already said it does not plan to raise its offer. According to Club Med's most recent annual report, published in February, Fosun currently holds 9.1% of the company, while Ardian has 9%. 

Club Med operates in 40 countries around the world through its sales and marketing activities and the operation of its 66 holiday villages. It has opened two properties in China and hopes to have a total five by 2015. Group revenue totaled EUR1.4 billion for the year ended October 2013, down 3.5% on the previous year.

Club Med shares, which have gained 13.5% since the beginning of the year, closed at EUR19.20 yesterday, valuing the company at EUR634 million.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Europe
• Greater China
• Consumer
• Buyouts
• China
• Europe
• Consumer
• Fosun Group
• Ardian
• buyout