Club Med board recommends Fosun consortium's renewed offer

This comes one month after the consortium issued a sweetened offer valuing the firm at EUR939 million ($1.1 billion), representing EUR24.60 per share - EUR1.50 above its previous offer.

The offer trumped that of Italian businessman Andrea Bonomi who offered to pay EUR24.50 per share via his private equity fund Global Resources earlier in December. The Fosun consortium will also pay EUR24.82 apiece for outstanding convertible bonds, compared to Global Resources' EUR25.98.

The recommendation brings Club Med closer to concluding the longest takeover battle in French history. Fosun had first invested in Club Med in 2010 and launched a privatization bid in May 2013 in conjunction with Axa Private Equity (now known as Ardian); the bidding price has risen nearly 45% over the last 18 months.

The initial offer of EUR17 per share valued the company at around EUR556 million. A slightly improved offer of EUR17.50 per share won board approval but the deal was delayed following complaints that the price was too low.This prompted a to-and-fro battle between Fosun and Global Resources with an ever-larger roster of participants.

The Fosun consortium, which holds an 18.4% interest in Club Med, now includes Chinese GP JD Capital, Hong Kong Utour International Travel Services and Fidelidade, a Portuguese insurer majority-owned by Fosun, as well as Ardian. For its part, Global Resources recruited KKR as a co-investor.

Having initially said it would maintain Club Med's public listing, the Fosun consortium subsequently indicated that a full privatization would be considered. The group's plans for the resort operator involve an upmarket approach that capitalizes on the shortage of high-end resorts in China. Club Med currently has three resorts in the country.

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