Bonomi in talks with KKR for Club Med bid
Tourists relax by the sea at Club Med in Grecolimano, Greece©Bloomberg
Any new bid by Italian investor Andrea Bonomi would have to leave Fosun's offer in the shade by 2 per cent
Italian investor Andrea Bonomi is in talks with US private equity group KKR as part of a last-minute attempt to win control of Club Mediterranée, sources close to the matter have told the FT.
Bringing KKR in as a minority partner would pit Mr Bonomi directly against China’s Fosun International, renewing a gruelling east-west tug-of-war over the French holiday operator.
Club Med shares jumped 3.6 per cent on Monday to close at €23.30 as investors appeared to welcome the prospect of yet another round in the struggle to gain control of the French company.
Sources close to the matter told the FT that Mr Bonomi and KKR were still in talks and that there was no guarantee of finalising an agreement before a deadline set by France’s stock market regulator of this Thursday afternoon.
KKR declined to comment.
Sources close to Fosun on Monday cast doubt on KKR’s interest, arguing that Mr Bonomi had unsuccessfully approached the private equity group as part of his first offer, which he made at the end of June.
KKR holds 49.9 per cent of PortAventura, an amusement park and entertainment complex in Spain that is controlled by Mr Bonomi’s Investindustrial group.
According to French rules, a new bid by Mr Bonomi would have to be at least 2 per cent higher than Fosun’s September offer of €22 per share, which valued Club Med at €839m.
Fosun said it would make its offer through Gaillon Invest II, a vehicle comprising Fosun, French private equity group Ardian, Club Med’s management, and U-Tour, a Chinese online travel agent.
The bid substantially increased Fosun’s planned participation in Club Med compared with a previous offer it submitted last year with the Paris-based Ardian.
At the same time, Fosun confirmed that it had bought all of the roughly 9 per cent of Club Med shares that Ardian had held, raising Fosun’s stake to about 18 per cent of the French group.
Founded in 1950 by a Belgian water polo player, Club Med has become one of the best-known brands in the global travel industry, offering the all inclusive-style getaways that it pioneered. But the group has suffered at the hands of stiff competition since the 1990s.
In September, Fosun said it would seek to return the group to high growth by winning market share in mature territories but also accelerating expansion in emerging markets such as China, Russia and Brazil.
Fosun’s offer topped a previous €21-per-share bid by Global Resorts, a partnership vehicle bringing together Mr Bonomi’s Investindustrial, Brazilian investment company GP Investments and South African hotel magnate Sol Kerzner.