Club Med’s board recommends Fosun’s improved offer

Holiday group Club Mediterranee’s board has given a unanimous recommendation that its shareholders accept the improved takeover offer from Chinese conglomerate Fosun International.

Fosun’s Gaillon Invest II vehicle offered €22 (HK$214) a share for Club Med last month, outbidding a €21 offer from Italian tycoon Andrea Bonomi and valuing the French resort operator at €839 million (HK$8.1 billion).

Bonomi subsequently wrote to directors of Club Med asking for updated financial information and his Global Resorts business said it was considering its options.

Club Med’s board said in a statement on Monday that its members had all agreed to tender their shares to the latest Fosun offer, welcoming its support of the group’s existing strategy of moving upmarket, seeking a bigger share of mature markets such as France while developing its business in fast-growing economies, including markets in Asia.

The board also called for a swift conclusion to the takeover saga that started in May last year, saying it was complicating the running of the business.

Both the Fosun and Bonomi bids aim to take advantage of a business that is down on its luck, hit by the weak economy in its core European market and by a stalled attempt to shift upscale. Both bidders hope to develop the brand – a pioneer of the all-inclusive holiday – in China.