French and Chinese investors planning a friendly takeover of all-inclusive operator Club Med have suffered a setback after an appeals court considering opposition to the deal set a hearing for next February.
Paris-based Axa Private Equity and Fosun, China’s largest private conglomerate, had hoped for a swift conclusion to the deal, which values the French holiday operator at €557 million. Management say it will allow it to move the company upmarket and allow it to expand into emerging markets.
However, yesterday an appeal court in Paris set February 27 as the date for hearing the complaints of two minority shareholder groups, who object to the offer price of €17.50 per share and also the fact that the deal will leave Axa and Fosun with 92% of the company and the existing management with 8%.
The opponents to the deal alleged experts hired to determine the benefits of the proposed takeover weren’t independent and they are seeking more information on the benefits management stands to receive.
