Friday, January 2, 2015

Club Med soon under the Chinese flag? – Le Parisien

Club Med soon under the Chinese flag? – Le Parisien

02 Jan 2015, 9:22 p.m. |. Update: 02 Jan 2015, 11:07 p.m.

. On December 19, the Chinese conglomerate Fosun and Sino-Brazilian-French-Portuguese partners had raised again their offer on the French company, offering € 24.60 per share, against € 24 previously offered by the Bonomi team.

On the same subject

An offer that values ​​the company at € 939 million.

But this time, auctions do not go up above. Because “after having carefully analyzed the situation of the public offer for the shares of Club Méditerranée SA and, in particular, valuation levels achieved for the company, the board of directors of Global Resorts SAS (note: a company Andrea Bonomi) decided not to bid, and therefore intends to withdraw its offer, “Bonomi camp announced in a statement.

Italian businessman puts and end the longest takeover in the history of the Paris on a Friday night in the hollow New Year of the bridge. And he justifies his choice by financial reasons, Global Resorts saying that “the current situation and valuations can no longer assume that the Club Med is an investment opportunity. “

Fosun, meanwhile,” welcomes this decision, “said a portfolio word.

Fosun placed on the development in China

Now it is the team led by the Chinese Fosun that way free Global Resorts even offering to hand over the 18.9% stake in Club Med held. Fosun held so far 18.25% of the French group. “The shares held by Club Med Global Resorts will be tendered Gaillon Invest II, or sold on the market,” explains Global Resorts indeed. Gallio Invest II is the company created by Fosun to bear its own takeover.

The unions had voted against

On October 6 Last, the works council (EC) Club Med had given an unfavorable advisory opinion from the supply of Fosun on background battle between the “Chinese” camp and that of the Italian businessman Andrea Bonomi.

The EC, which includes 11 union representatives voted with 8 against (FO and Unsa) and 3 neutral (CFTC and CFDT) against the proposed Fosun.

It was the first time that such defiance was expressed as internally, with the support of the majority FO union to Fosun, entered the capital in 2010.

FO fears for jobs and believes that with the Chinese majority shareholders, “the level of decision-making” of the group will travel to China, with consequences “on the sustainability of seat structures in France.”

Step outside of the bidding war, Bonomi and Fosun will not have the same vision on the future of Club Med, which specializes in high-end vacation clubs. Fosun strong emphasis on the development in China, “first in the world tourism market,” and in Brazil with its Brazilian partner Nelson Tanure.

Possible projects are discussed elsewhere in Colombia including, discussions were held with “other regional partners, including Europe and North America,” some of which may eventually enter the capital.

Andrea Bonomi would be interested in villages clubs more midrange and less focused on China, more about France.

Henri Giscard d’Estaing was in favor

The offer of Fosun had in all cases favors the CEO of Club Med, Henri Giscard d’Estaing who defends the move upmarket and internationalization of Club Med, which aims to balance between French customers, developed and emerging countries.

The French now make up 36% of customers of the 70 villages of the group trident in 26 countries (448,000 French), followed by Chinese (126,000) and Belgium (80,000).

One strategy that has not yet paid off as the last year, the Club Méditerranée wiped € 12 million net loss for a turnover of € 1.38 billion and operating profit of € 13 million. Its leaders, however, insist “heavy investment” made “€ 1.2 billion over the period 2002-2014″

The battle for redemption of Club Med, eventful, remedies and bidding,. began in May 2013 when Fosun then associated with Ardian funds (formerly Axa Private Equity), had launched an assault on the group with an offer of € 17 per share.

The Caisse des Dépôts, silent on the issue, holds more than 5% of the capital of Club Med.

A Chinese team, Portuguese, French and Brazilian

In formulating its new proposal of 19 December, Fosun, supported by the Club CEO, Henri Giscard d’Estaing, has kept the same partners, but the mounting structure has been “simplified”.

The Portuguese insurance subsidiary of Fosun, Fidelidade, integrated directly Gaillon II – the company created by Fosun to bring his bid – alongside other minority partners, the Chinese U-Tower, French investment company Ardian and management of Club Méditerranée. “This makes up a little more debt than before, or € 280 million instead of € 230 million,” said a spokesman Fosun camp.

Brazilian Nelson Tanure which driver Industrial conglomerate Docas Investimentos, reiterated his interest to take a stake in Gaillon II and could rise to 20% of the share capital “of this structure. Is ultimately take about 10% of the capital.

VIDEO. The CEO of Club Med defends its policy

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