Club Med in €556 million takeover deal

Club Med in €556 million takeover deal

French all-inclusive resort operator Club Med is to be taken over in a deal worth €556 million.

The company’s two biggest shareholders lodged the friendly bid as Club Med reported a drop in bookings from Europe.

Sales in the six months to the end of April fell 2.5% to €763 million, after dropping 6% in France and 3% in the rest of Europe. Sales in the Americas and Asia rose by 6% and by 4% respectively. Bookings from the UK were down by 2%.

Paris-based Axa Private Equity and Fosun, China’s largest private conglomerate, which already own 19% of the shares, are joining the company’s management to offer €17 a share – a 23% premium to Friday night’s close of €13.85, the Financial Times reported.

Shares in Club Med jumped 22% yesterday on news of the takeover offer, ending at €16.95.

Chief executive Henri Giscard d’Estaing described the offer as a stroke of “good luck” that would give Club Med breathing space to press ahead with plans to move upmarket and expand in fast-developing economies. It plans five resorts in China, of which one is open.

Club Med aims for Chinese holidaymakers to become its second-largest customer base by the end of 2015 as part of a goal to reduce European sales to two-thirds of the total.

Axa and Fosun, which have been shareholders since 2011, said Club Med needed “to be free from short-term constraints” for its strategy given the “difficult trading environment of the tourism market in Europe, in particular France”.


This is a community-moderated forum.
All post are the individual views of the respective commenter and are not the expressed views of Travel Weekly.
By posting your comments you agree to accept our Terms & Conditions.

More in News