The offer of 22 euros a share, made along with partners, values Club Med at 839 million euros ($1.08 billion) including convertible bonds, the bidders said in a statement. Bonomi's Global Resorts group offered 21 euros on June 30 in an offer that values the company at about 790 million euros.
French regulator Autorite des Marches Financiers, or AMF, had set today as the deadline for any bid rivaling that of Global Resorts. The Fosun offer is the Chinese company's third attempt in 15 months to secure ownership of the resort operator. Fosun and Axa Private Equity, now called Ardian, offered 17 euros a share last year and later raised the bid to 17.50 euros.
"We are presenting the highest offer and the best liquidity for all the company's shareholders," Jiannong Qian, head of the Gaillon Invest II investment vehicle associated with Fosun, said in the statement. "The offer is based on a long-term industrial plan. It is in line with Club Med's strategy and is supported by the management.´´
Global Resorts can submit a new bid, as long as it tops the Fosun offer by at least 2 percent, according to AMF rules. Fosun said today it would welcome more investors, leaving open the possibility that Bonomi could join the Chinese company's bidding group. The Italian investor owns almost 10 percent of Club Med, according to data compiled by Bloomberg.
Considering Options
''We have noted the offer and we will now look at our options," said David Stuerken, a spokesman for Global Resorts.
The offer was made by Fosun and Ardian, as well as Club Med management, Beijing UTour International Travel Service Co., and Cia de Seguros Fidelidade Mundial SA, a Portuguese insurance company controlled by Fosun, according to the statement. Fosun will own 85.1 percent of the vehicle, U-Tour 7.5 percent, Ardian 5 percent, and Club Med management 2.5 percent, based on acquiring 50 percent of the shares.
Club Med shares were suspended in Paris today after Fosun bought 2.98 million shares from Ardian for 22 euros apiece. Fosun now owns 18.3 percent of Club Med and 24.4 percent of the voting rights, according to the AMF.
Club Med shares surged to their highest price in 5 1/2 years after Global Resorts' offer, and have risen 22 percent in Paris this year, for a market value of 764 million euros.
Offer Period
While the AMF will define an offer period in light of today's bid, Fosun said it expects it to be Oct. 17 to Nov. 20. The regulator may also set a deadline for a potential counter-bid by Global Resorts or other parties.
Fosun started buying Club Med shares in 2010 and began a strategic partnership with the operator to lure more Chinese vacationers to its resorts.
Since 2010, Guo's closely held Fosun Group has spent more than $3.7 billion on foreign acquisitions, including U.S. and European fashion labels, a Hollywood film studio and skyscraper One Chase Manhattan Plaza in New York's financial district. The billionaire said in a recent interview that he'll continue a global acquisition spree with the aim of doubling assets to about $100 billion within five years.
Societe Generale SA acted as exclusive financial adviser to Gaillon Invest II. DLA Piper and Darrois Villey Maillot Brochier acted as legal advisers.
Source: Bloomberg News by Richard Weiss | Photo: China Daily
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