China’s Fosun sweetens Club Med bid
A consortium led by China Fosun International has improved its offer for France-based Club Méditerranée (Club Med), valuing the vacation resort operator at EUR879 million ($1.12 billion).
The improved offer came hours before the December 1 deadline. According to a filing, Fosun is offering EUR23.50 per share, EUR1.5 above its previous bid tabled in September. This tops the EUR23 per share offered by Global Resources last month, which is controlled by Investindustrial, a private equity fund managed by Italian businessman Andrea Bonomi.
Fosun has also agreed to buy outstanding convertible bonds for EUR24.82 apiece, compared with the rival offer of EUR24.41. It previously offered EUR23.23.
In September, Fosun and Ardian Private Equity reactivated their interests in Club Med, forming a new consortium that includes Chinese GP JD Capital and Hong Kong Utour International Travel Services.
The consortium launched a tender offer through Gaillon Invest II, a joint venture in which Utour-JD Investors is also a member. Utour-JD is ultimately owned by Utour and Jiuding Capital Growth Fund I and II. Fidelidade, a Portuguese insurer majority-owned by Fosun, went directly into the tender offer alongside Gaillon Invest II.
Fosun's contribution to Gaillon Invest II comprises EUR144.5 million worth of shares in Club Med and EUR471 million in cash. The latest improved offer wil see Fosun put an additional EUR51.9 million into the vehicle.
The Chinese conglomerate owns 9.98% of Club Med's issued share capital and 16.94% of its voting rights, having originally invested in the company in 2010. It has an agreement in place to buy an additional 8.3% of the issued share capital. Ardian - formerly Axa Private Equity - owns 9%.
Fosun and Ardian withdrew their takeover bid for Club Med in August, which came after French regulators approved the Investindustrial offer. Bonomi owns 11% of the company.
The two parties 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. The revised offer received support from Club Med's board but the deal was delayed following complaints that the proposed acquisition price was too low.
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