Fosun Sweetens Offer For Club Med Buyout To €24.60 Per Share

Shanghai-based Chinese conglomerate Fosun International Limited has raised its buyout offer for French holiday firm Club Méditerranée to €24.60 per share, trumping an €24.00 per share proposal two weeks ago by Global Resorts SAS, a subsidiary of Investindustrial Group run by Italy’s Bonomi family.

The new proposal values the Paris-based Club Med at €939 million, up from the previous offer’s €915 million. 

The prolonged bidding war to acquire Club Med started last May, when Fosun International joined forces with private equity firm Ardian in proposing to acquire Club Med at €17 per share.

In June, the two parties decided to improve the terms of the offer, which has the backing of Club Med’s chief executive, Henri Giscard d’Estaing, to €17.5 apiece due to pressure from shareholders.

Then in August this year, the French financial markets regulator confirmed that Global Resorts has proposed a sweetened deal at €21 per share. A few days later, Fosun announced it would withdraw its bid.

But a month later, Fosun and Ardian, with a new co-investor Chinese travel agency U-Tour, launched a last-minute counter offer with a price tag of €22 per share, valuing Club Med at €839 million.

At that time, Fosun bought Ardian’s stakes in Club Med to increase its total shareholding to 18%, compared with 10% owned by Global Resorts then.

In early November, Global Resorts SAS offered €23 per share in a deal that valued the Paris-based Club Med at €874 million. Global Resorts also bought Club Med shares on the open market, bringing its total shareholding of Club Med to 15.9%, with options to further expand it to 18.9%.

It also attracted U.S. private equity giant Kohlberg Kravis Roberts and Co. (KKR) as a minority co-investor in the deal.

Founded by the Italian Bonomi family, Investindustrial operates through a series of investment funds and holding companies, each managed independently and established in the United Kingdom, Spain, Switzerland, Luxembourg, the United States and China.

The family currently has around €4.4 billion of assets under management.