Reuters – Club Med Board Accepts Improved Bid from Top Investors

Club Mediterranee‘s board accepted an improved offer from two top shareholders that plan to take over the French holiday firm and accelerate its shift to fast-growing markets, writes Reuters. Chinese investor Fosun International and AXA Private Equity, which have teamed up with management, raised their bid to 17.50 euros a share from a previous offer of 17 euros that had left some shareholders unhappy, writes Reuters.

Reuters – Club Mediterranee’s board on Tuesday accepted an improved offer from two top shareholders that plan to take over the French holiday firm and accelerate its shift to fast-growing markets.

Chinese investor Fosun International and AXA Private Equity, which have teamed up with management, raised their bid to 17.50 euros a share from a previous offer of 17 euros that had left some shareholders unhappy.

As a result of the raised offer, shareholders represented on the board – including Caisse de Depot et de Gestion du Maroc, which has 7.1 percent stake – have decided to tender their shares, AXA Private Equity and Fosun said in a statement.

Other top shareholders that have accepted the offer include Saudi conglomerate Rolaco – with a 5.6 percent stake – and Italy’s Holding Edizione Benetton – which holds 2.2 percent of Club Med.

Fosun, with a 9.96 percent stake, and AXA, with 9.4 percent, said in May they wanted to take over Club Med and accelerate its shift to fast-growing emerging markets like China.

Under their plan, a joint venture 46 percent owned by Fosun, 46 percent by Axa Private Equity and 8 percent by 400 Club Med managers, would control the resorts operator.

Founded in 1950 and listed since 1966, Club Med was a pioneer of the all-inclusive holiday resort.

But it fell on hard times in the past decade because of stiff competition and an unsuccessful expansion into services. A more recent drive to recast itself as an upmarket operator has been hampered by a flagging European economy.

Club Med shares closed at 17.32 euros on Monday, valuing the firm at 547 million euros ($716 million).

($1 = 0.7637 euros) (Reporting by Elena Berton; Editing by Mark Potter and Christian Plumb)