Sunday, January 4, 2015

Club Med goes under the Chinese flag – BBC

Club Med goes under the Chinese flag – BBC

The Italian Bonomi threw in the towel Friday, leaving the Fosun Group take control of the tourism group.

This is the end of a historic stock market battle, the most played has known the Paris. And this is the Chinese group Fosun who is the winner. This time, nothing should come bar the Club Med of redemption road. Friday night, his Italian rival, the investor Andrea Bonomi, has indeed forfeited. After months of stock market battle, Bonomi found that the game was worth the candle over. The latest offer on the table before Christmas by Fosun, to 24.60 euros per share Club Med will be good. This offer has more than formal steps to be carried out on the market in the month of January.

The perseverance of the Chinese group will thus not have been in vain. Fosun joined Club Med’s capital since 2010. He is a partner, particularly through the villages that the French group established in China (3 active, 2 under construction). His first public offer for the capital of the French group was in June 2013. At the time, Fosun, combined with Ardian tricolor investment funds only offered 17 euros per share. Suffice to say that it took Guo Guangchang, founder of Fosun, patience (his ambitions had been challenged in court by minority) and many more ways since the Club will pay 45% more (939 million euros) than it originally planned. The Chinese group will perform this check primarily in equity (only 280 million of debt), and involving several partners and the Portuguese insurer Fidelidade he has.

The victory of Fosun advised by Societe Generale, is also that of Henri Giscard d’Estaing, CEO of Club Med, which has partnered with the Chinese offer which reinforces its strategy to move upmarket Club Med, conducted a decade. Conversely, Andrea Bonomi had no words strong enough to criticize the management of the club, whose financial results were not at this stage up to the investments made. After the withdrawal of the Italian, the Club will have to lick his wounds. The ferocity and the length of the battle that just play have nerves of employees and leaders to the test, while the company was forced to immobility until his fate is decided.

Guo Guangchang and Henri Giscard d’Estaing will now be able to place their roadmap which will be more demanding for the Club as its new Chinese owner will have paid dearly.

Their goal: to continue the upgrading of the group, whose villages classified 4 and 5 Trident show much higher levels of profitability to 3 tridents often inherited from the era of “Bronzés”; and accelerate its internationalization to regain growth. The future of the Club and will play mostly in Asia, particularly in China, whose appetite for tourism explodes. But the club also wants to capitalize on Latin America, particularly in Brazil. In this country, the investor Nelson Tanure negotiating with Fosun input up to 20% stake in Club acquisition holding company. In the key, a development plan of several villages in Brazil. In total, the new owners are considering 1.1 billion investment over the period 2015 to 2017 (250 million funded by real estate partners). They could also make an introduction in Club Med on an Asian stock exchange site. Projects with Andrea Bonomi felt that they too neglected the French clientele Club, which still accounts for 36% of its & #8220;GM” (nice members).

Fosun should have no trouble convincing shareholders Club Med to bring him their shares at a price that many consider unexpected. But the Chinese group has yet to show their credentials to the opinion. While the political class had remained silent during the battle, keeping to arbitrate between a Chinese and a European takeover offer hostile bid, the epilogue causes reactions today.

Florian Philippot, for the FN blasted an operation that expands the list of past under the Chinese flag French companies and a government “scandalously inactive otherwise complicit.” Jean-Christophe Cambadélis, the boss of the PS denounced feedback comments “racist and alarmist.”

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