China’s Fosun Readies New $1.11 Billion Club Med Bid
Fosun Set to Offer €23.5 a Share for Resort Operator
PARIS--A group led by China’s Fosun International is set Monday to raise its offer for Club Méditerranée , valuing the French company at around €993 million ($1.11 billion) according to a person familiar with the matter.
In the latest round in an intense battle for control of the French resort operator, the group of investors led by the China-based conglomerate will make an offer to buy Club Med for €23.5 a share later Monday afternoon, the person said.
That is €0.5 more than the latest bid from rival suitor Italian businessman Andrea Bonomi. Mr. Bonomi and his partners, which now includes private-equity firm KKR , last month offered €23 a share, equivalent to €874 million, for the French group.
The Chinese-led group has received the backing of Club Med’s management, led by Chief Executive Henri Giscard d’Estaing, having made its first offer for the company, in which it has a minority stake, more than a year ago.
Fosun, backed by France’s AXA Private Equity, made an initial offer of €17 for the shares they didn’t already own in Club Med, equivalent to a 23% premium to Club Med’s share price on the eve of the bid announcement.
Mr. Giscard d’Estaing said earlier this year that he and other executives would investor in the new Fosun-Club Med venture.