Club Med battle ends with Fosun consortium victory
Shareholders in French vacation resort operator Club Méditerranée (Club Med) have accepted a EUR939 million ($1.1 billion) takeover offer from a consortium led by China's Fosun International, bringing the longest takeover battle in French history to its conclusion.
The consortium made a sweetened offer in December, valuing the company at EUR24.60 per share - EUR1.50 above its previous offer and EUR7.60 higher than its initial bid two years ago.The Fosun consortium will also pay EUR24.82 apiece for outstanding convertible bonds.
The offer - which was recommended by the company's board last month - was made after original bidders Fosun and Ardian Private Equity renewed its interest in Club Med last September, forming a new consortium.
It trumps 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 consortium, which already holds an 18.4% interest in Club Med, includes Chinese GP JD Capital, Hong Kong Utour International Travel Services and Fidelidade, a Portuguese insurer majority-owned by Fosun, as well as Ardian.
Under the terms of the deal, Fosun and its partners will control 92.8% of Club Med shares by the end of the offer period. 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.
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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