China’s Fosun International Ltd. (656) raised its takeover bid for Club Mediterranee SA (CU), the French holiday resort company, hours before a deadline expired to eke out a higher offer and move past a competing proposal.
Fosun is offering 23.50 euros for each share, 50 cents more than the Global Resorts SAS consortium of bidders and 1.5 euros above its own previous bid. It also agreed to buy outstanding convertible bonds for 24.82 euros, compared with the rival offer of 24.41 euros, according to a statement yesterday.
The Chinese bidder had until the end of yesterday to sweeten its proposal, after Global Resorts lifted its bid on Nov. 12 to take the lead in a takeover battle that’s dragged out for months. Fosun had sought to strengthen its case with a pledge to expand Club Med’s reach into China, where travel demand is growing among an increasingly mobile population that counts France among its most popular destinations.
Under French rules, any new bid must be at least 2 percent higher than the existing one. Fosun said the additional amount of cash being contributed is about 51.9 million euros ($64.8 million.)
Fosun, which previously acquired stakes in Italian luxury menswear company Raffaele Caruso SpA and German retailer Tom Tailor Holdings, is interested in travel, fashion and luxury investments globally, Patrick Zhong, its head of global investments said in an interview last month.
Club Med shares closed unchanged at 23.90 euros in Paris yesterday.
The French AMF financial markets regulator set Dec. 17 at 6 p.m. as the deadline for a fresh proposal by Global Resorts.
To contact the reporter on this story: Benedikt Kammel in Berlin at [email protected]
To contact the editors responsible for this story: Jacqueline Simmons at [email protected] Joshua Fellman