A CHINESE investor and a French private equity firm have won over Club Med with an improved €557m (£361m) takeover bid, seeking to accelerate a shift at the holiday resorts pioneer to fast-growing emerging markets.
Fosun International and AXA Private Equity, who have teamed up with Club Mediterranee management and are already the firm’s biggest shareholders, said yesterday they would pay €17.50 a share for the stock they do not already own, up from their previous offer of €17.
Club Med’s board said it would back the deal and several of its top shareholders pledged support after staying mum on the previous offer. One small shareholders’ group had called the initial price too low.
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.
City A.M. Reporter