Axa PE and Fosun to acquire Club Med for €540m

Axa PE and Fosun aim to accelerate Club Med's development in emerging markets, as well as strengthen its position in more mature markets. Both investors have been Club Med shareholders for two and three years respectively. Both owned less than 10% of the business prior to the offer.

Axa PE and Fosun held a combined 19% stake in the business prior to the deal. They offered stakeholders €17 per share, which represents a 23% premium to Friday's closing price of €13.85.

The offer will be carried out through a newco. The investors and management will offer €17 per Club Med share and €19.23 per convertible bond – the former representing a 28.4% premium on the volume-weighted average price over one month.

Axa PE, Fosun and management will finance the offer through cash contributions, debt and the contribution of their Club Med securities to the newco.

The offer would lapse should the number of securities tendered to the offer not exceed the threshold of 50% of the share capital and voting rights of the company. A squeeze-out could be put in place should the newco obtain 95% of Club Med securities following the offer.

Should the newco hold 50.1% of Club Med, the aggregate shareholding of the management (around 400 people) would represent around 8% of the share capital of the newco for a total investment of €8m.

If the takeover goes through, Axa PE and Fosun will be bound by a four-year lock-up commitment, as will management.

Company
Founded in 1950, Club Med operates holiday resorts across the world. The Paris-based company posted a €1.5bn turnover and a €126m EBITDA in 2012.

People
Dominique Gaillard is managing director of direct funds at Axa PE.

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• Topics
• France
• Buyouts
• Consumer
• France
• Axa Private Equity