Custom Search

Monday, December 1, 2014

China’s Fosun Readies New $1.11 Billion Club Med Bid

(WSJ) A group led by China's Fosun International is set Monday to raise its offer for Club Méditerranée , valuing the French company at around €993 million ($1.11 billion) according to a person familiar with the matter.

In the latest round in an intense battle for control of the French resort operator, the group of investors led by the China-based conglomerate will make an offer to buy Club Med for €23.5 a share later Monday afternoon, the person said.

That is €0.5 more than the latest bid from rival suitor Italian businessman Andrea Bonomi. Mr. Bonomi and his partners, which now includes private-equity firm KKR , last month offered €23 a share, equivalent to €874 million, for the French group.

Fosun, a privately-held group whose latest acquisition spree has included investments in insurance and fashion around the world, is making its new bid ahead of a deadline Monday imposed by French market regulator AMF to react to the latest bid from Mr. Bonomi.

The Chinese-led group has received the backing of Club Med's management, led by Chief Executive Henri Giscard d'Estaing, having made its first offer for the company, in which it has a minority stake, more than a year ago.

Fosun, backed by France's AXA Private Equity, made an initial offer of €17 for the shares they didn't already own in Club Med, equivalent to a 23% premium to Club Med's share price on the eve of the bid announcement.

Mr. Giscard d'Estaing said earlier this year that he and other executives would invest in the new Fosun-Club Med venture.

Source: Wall Street Journal by Thomas Varela

from China Travel & Tourism News


Put the internet to work for you.

Turn off or edit this Recipe

No comments: