Club Med investors in takeover bid

AFP-JIJI

The two main shareholders in upmarket holiday group Club Mediterranee, including a Chinese firm, said Monday that they would make a bid for the company, driving Club Med shares up over 20 percent.

The two bidding companies, AXA Private Equity and Chinese conglomerate Fosun, said that their bid would be friendly and involved top Club Med managers.

The bid would be pitched at €17 ($22) per share, representing a premium of 28.4 percent on the average share price over a month, the two bidders said in a statement.

The terms value the holiday company at about €540.6 million ($700 million).

Club Med has been through difficult times and a refocusing of its strategy, and the financial outlook for the business now looks strong despite a depressed economic climate in Europe.

Club Med reported a 7.1 percent rise in net profit for the first six months of its financial year to €18 million ($23.3 million) and said that the level of bookings for the holiday season in Europe was higher than at the same time last year.