by Pascale Denis
PARIS, Oct. 3 (Reuters) – The board of directors of the Club Med, not surprisingly, recommended Monday enhanced Fosun bid, advising shareholders seeking immediate liquidity tender their shares to the offer.
The Board unanimously agreed that the project of the Chinese conglomerate was the highest bidder financially and combined both the interests of shareholders and those of the society, including “accelerating the strategic repositioning” of the group on the high-end villages, “the increased development in Asia (..) and the consolidation of its market share in mature markets.”
All of its members participating in the vote (the four administrators interested in offering Fosun who did not participate in the deliberations) agreed to tender their shares.
The Board had already welcomed the second offer made on September 12 by Gallion Invest II, an investment vehicle controlled by Fosun, saying it allied “increase shareholder value and will continue and strengthen the strategy of the club.”
More than a year after launching a first offer, Fosun has returned to battle after being defeated by the Italian businessman Andrea Bonomi.
Supported by the management the group, he offers to buy Club Med at a price of 22 euros per share, instead of the 21 euros offered by the Italian, valuing the company at 839 million euros (860 million including debt.)
Contacted by Reuters, a spokesman Andrea Bonomi declined to comment Monday night following the decision of the Board of leisure group.
In a statement, the board welcomes the support of village leaders to Gaillon II project and tries to reassure staff representatives who, earlier, given an unfavorable opinion in the project as too risky over the group under the Chinese flag and fearing offshoring decision centers.
CRITICAL
Anticipating criticism, Fosun emphasized its commitment to the French roots of the Club, whose headquarters remain based in Paris The management confirmed in office and the listing of the Company held at the Paris Bourse.
The Board therefore considers the project “likely to guarantee the identity of the club, the sustainability of its business, maintaining a stable shareholder structure and its policy on jobs. “
Blaming the publication by the press of letters received from Global Resorts (Andrea Bonomi vehicle)” likely to “affect negative image of the Club “, he also points out that the duration of successive bids, engaged since May 2013,” complicates the conduct of the activities of the Club. “
After requesting updated financial data which it n would not have had access, Andrea Bonomi found in a letter dated October 3, the terms of financing Gallion II could “increase pressure on Club Med with the risk identified by employees to streamline the business, which entail negative social consequences for employees at headquarters and villages. “
The Financial there also reiterated his criticism of a development strategy” without any commitment to the French and European market, “he ensuring want to preserve “the France and Europe as a key asset of the Club.”
The market is betting meanwhile on a continuation of the battle and a new higher bid, the title exchanging Club Méditerranée Since the latest offering from Fosun, well above the 22 euros offered.
As of September 30, the hedge fund Boussard and Gavaudan was also mounted to 4.8% stake in the club. Fosun controlled in 18.3% and Strategic Holdings, the
desktop Andrea Bonomi, 9.90%. Value closed Monday at 22.45 euros, signing up 29.31% since the beginning of the year.
The proposed takeover was filed Monday with the Autorité des marchés financiers (AMF), which has now at least five days to complete its declaration of conformity and, in Following the new calendar. (Edited by Matthieu Protard)
<- End .contenu_flottant_gauche ->
No comments:
Post a Comment