Club Med looks likely to be sold after the board voted unanimously to accept a slightly improved offer from its two largest shareholders who are backed by the chief executive Henri Giscard d’Estaing, the son of the former French president.
The Chinese conglomerate Fosun and Paris-based Axa Private Equity, which already own 19.3% of shares in the French holiday group, increased their offer by 3% to $17.50 per share, which values the business at $557 million.
The board holds 14.9% of the shares, which together with the 19.3% held by Fosun and Axa, means the offer is supported by shareholders representing 34.2% of Club Med’s capital, said the Financial Times.
Fosun and Axa have said they will be equal partners in the offer, which is valid if they gain 50.1%, on a fully diluted basis.
If there is a 95% take-up, they may delist Club Med, taking it private after 47 years on the market. The formal buyout offer will be launched on July 12.
