Fosun, Axa's Club Med takeover delayed

Last month, minority shareholder's association ADAM and Charity Investment Asset Management (CIAM) said the proposed acquisition price of EUR17.50 ($23.7) per share is too low. Both parties filed complaints against the deal with the Autorité des Marchés Financiers (AMF), the French financial markets authority.

AMF later extended the period of the bid, which had been due to close on August 30, until further notice.

However, a Paris Court of Appeal has set February 27 as the earliest date for hearing the complaints of the two minority shareholders groups. A verdict, which could unfreeze the process, is not expected before mid-March, according to unquote, AVCJ's Europe-focused sister publication.

Axa and Fosun initially planned on offering EUR17 per share, but then revised it to EUR17.50. The new bid, worth EUR557 million ($729 million), won favor with the company's board. The two investors will also pay EUR19.79, including coupon, per bond convertible in or exchangeable for new or existing shares (OCEANEs), up from EUR19.23.

Fosun and Axa plan to operate Club Med as a joint venture, each owning 46% with the balance held by 400 of the company's managers. Henri Giscard d'Estaing is to remain CEO. Fosun currently holds 9.9% of Club Med and Axa has 9.4%.

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• Topics
• Greater China
• Buyouts
• Consumer
• China
• Fosun Group
• buyout
• AXA Private Equity Asia
• Consumer
• Europe
• Outbound investment