Chinese conglomerate Fosun International struck back with a counter takeover bid on Club Med shares and outflanked Investindustrial‘s bid. Fosun’s bid offers 22 euro per share over the 21 euro per share offer by Investindustrial (and 23,23 euro per convertibile bond Oceane over 22,41 euros).
Fosun’s counter-bid was announced last Friday September 12 by Fosun’s top management (download here the press release, the public offer project deposited by Fosun with the Amf and the speech of Fosun’s managing director, Jiannong Qian) at the last-minute as that day was the last possibile day allowed by the French law for launching counter-bids. Actually the bid by Investindustrial, the Italian private equity operator led by Andrea Bonomi, was due to end next September 19 (see a previous post by BeBeez).
lnvestindustrial’s bid was launched by Gobal Resort , a veichle 90% owned by Investindustrial’s funds and 10% owned by two international operators in the tourism and hotel sector ( South African entrepreneur Sol Kerzner and Brazilian GP Investments) and acts in agreement with Strategic Holdings sarl. The latter is the investment veichle owned by the Bonomi family through its BI-Invest holding which in turn is the principal investor in Investindustrial’s funds.
As for Fosun’s bid, it is expected to be start next October 17 and to end on November 20 so Mr. Bonomi has still time to think of a new bid. The French law admits counter-bids till 5 working days before the end of the current bid which in this case means November 13.
Fosun had in turn launched its bid on Club Med shares in Summer 2013 offering 17.50 euros per shares together with Ardian private equity fund and Club Med’ s top management, chairman and managing director Henri Giscard d’Estaing included. The bid was then suspended due to legal actions from some minority shareholders and started again last June. But in the meantime Investindustrial launched its own bid and Fosun and Ardian had to step back.
This time Fosun comes back almost alone in the deal as the Chinese conglomerate controls with an 85.1% stake the veichle Gallion Invest II launching the bid (Ardian has 5%, Club Med management has 2.5% and online leading Chinese travel operator U-Tour has 7.5%) . Moreover Fosun chose to support the bid also with its Portuguese insurance company Fidelidade.
Finally Gaillon Invest II might open its capital to other investors with Fosun keeping the control. Docas Investimentos, a Brazilian conglomerate led by Nelson Tanure and active in the tourism sector, is negotiating the acquisition of a stake in Gallion II up to 20% of its capital.
The bid is not aimed at Club Med’s delisting from Paris Stock Exchange but it is conditioned by Gallion and Fidelidade will control at least 50% of Club Med’s capital or shareholders voting rights.