Chinese group in bid for Club Med holidays: Firms

Chinese group in bid for Club Med holidays: Firms

PARIS - The two main shareholders in up-market holiday group Club Mediterranee, including a Chinese firm, said on Monday that they would make a bid for the company, driving Club Med shares up 22.53 per cent to 16.97 euros.

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

The bid would be pitched at 17.0 euros per share, representing a premium of 28.4 per cent on the average price of the share over a month, the two bidders said in a statement.

The terms value the holiday company at about 540.6 million euros (S$884 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.

At the same time, Club Med reported a 7.1-per cent rise in net profit for the first six months of its financial year to 18.0 million euros and said that the level of bookings for the holiday season in Europe was higher than at the same time last year.

In 2012, Club Med made a net profit of 2.0 million euros, and its operating margin was unchanged.

The statement on Monday said that the proposed bid would enable shareholders to benefit from action to move the company up market, and would enable the business to enter a new phase of development.

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