Ardian, Fosun back in Club Med battle with fresh bid

Ardian and Fosun will not go down without a fight: more than a year after their initial take-private attempt, the duo of investors looked to have thrown in the towel in mid-August, when Investindustrial saw its counter-offer approved by the Club Med board and the French regulator.

Investindustrial, via the holding company Global Resorts, offered €21 per share and €22.41 per convertible bond. The offer exceeded that made by Gaillon Invest (the Ardian/Fosun vehicle) by more than 20%, the duo having offered €17.5 per share and €18.79 per convertible bond back in 2013. In light of this, Gaillon withdrew its offer in August.

But Ardian and Fosun have come back with yet another counter-offer: their new vehicle, Gaillon Invest II, is now offering €22 per share and €23.23 per convertible bond, outbidding Global Resorts by 4.8% and 3.7% respectively. Gaillon Invest II is acting together with Fidelidade-Companhia de Seguros, a Portuguese insurer owned by Fosun.

Should the bid be successful, Fosun would own 85.1% of Gaillon Invest II; Ardian would hold 5%, with Club Med management and travel operator U-Tour securing 2.5% and 7.5% respectively. Gaillon Invest II stated it intends to open its capital to new partners.

Ardian's role would therefore be that of a small minority investor, with the deal being largely led by Fosun. It is also worth noting that the bidders do not intend to delist the business. They expect the offer to open by mid-October and to close before the end of November.

"We have noted the improved bid by Fosun and, in line with French market regulations, will take time to look at our options," Investindustrial stated via a spokesperson.

Click here to read our previous coverage of the Club Med saga.

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• Topics
• France
• Deals
• France
• Ardian (formerly Axa PE)