(Reuters) – Club Mediterranee‘s top shareholder, Andrea Bonomi, outbid French private equity firm Ardian and Chinese conglomerate Fosun International with an offer for the holiday company on Monday, valuing it at 790 million euros ($1.1 billion).
Investindustrial, the private equity fund led by Italian tycoon Bonomi, said it offered 21 euros per share and 22.41 euros per convertible bond for the 64-year-old all-inclusive holiday pioneer.
The deal represents a 22 percent premium to the existing 17.50 euro-a-share offer by the Franco-Chinese alliance, Bonomi said. Club Med shares were suspended on Monday ahead of the announcement and last traded at 19.51 euros.
The offer would see 150 million euros of additional investment in Club Med to speed up its development, with 5,000 additional beds and six new holiday villages, Investindustrial said.
The bid is made by Global Resorts SAS, which is 90 percent owned by Investindustrial, with the remainder held by South African entrepreneur Sol Kerzner, GP Investments and the management of Barcelona theme park operator PortAventura.
Club Med would not be obliged to pay dividends for seven years under the terms of the offer, which “will allow the group to devote its resources to its development”, Investindustrial said.
The French stock market watchdog, AMF, had asked for clarity on Bonomi’s intentions towards Club Med after another of his funds, Luxembourg-based Strategic Holdings, became the company’s top shareholder last month with a stake of nearly 11 percent.
AMF had given Investindustrial until 1600 GMT on Monday to make a rival bid or be banned for six months from doing so. Ardian and Fosun had offered 557 million euros for Club MedGet your FREE trial or subscribe now to Buyouts to find new deal opportunities, super-charge your fundraising efforts and track top managers.