Fosun moving in on Club Med with partner AXA
With fellow stakeholder AXA Private Equity, the firm is proposing a US$700 million buyout
Mainland conglomerate Fosun International and Paris-based AXA Private Equity are planning to take over French holiday resort company Club Méditerranée for about US$700 million.
The two main shareholders of the French company yesterday released a press statement in France saying they were proposing a price of €17 (HK$170) per share. "The price would reflect a premium of 28.4 per cent over the volume-weighted average price over one month," the statement said.
AXA Private Equity and Fosun have decided to involve the managers of Club Méditerranée in order to implement a strategy in line with the difficult environment of tourism market in Europe, in particular in France
Given that Club Med has 31.84 million outstanding shares, the offer is valued at €541.3 million, or US$700 million.
Club Med shares shot up 25 per cent, their biggest jump in more than two decades, in Paris yesterday.
The offer also included €19.23, with coupon, per bond convertible in or exchangeable for new or existing shares issued by Club Med, the statement said.
Fosun - which first invested in the company in 2010 - has a stake of about 10 per cent in Club Med, while AXA owns about 9.37 per cent of the French tour operator.