China's Fosun and partners snap up 92.8% of Club Med
Chinese conglomerate Fosun and its partners have snapped up 92.8 percent of French holiday resorts group Club Med, authorities announced Wednesday, closing out a takeover saga that lasted nearly two years.
The provisional results announced by France's Financial Markets Authority (AMF) easily surpassed the 50 percent needed for the public share offering to be considered a success.
However it was less than the 95 percent required to force remaining shareholders to sell, and a new public offer should be announced in the coming days for the remaining shares.
Fosun offered 24.60 euros per share, which values the famous French vacation villages group at around 939 million euros (just over $1 billion).
Fosun -- which has worked with Club Med in expanding its activities in China -- fought a long bidding war against Italian businessman Andrea Bonomi's Global Resorts.
The takeover battle, which began in May 2013, was the longest in the history of the Paris Bourse.
The Gaillon Invest II investment vehicle that bought the Club Med is 91 percent owned by Fosun, with the balance including the French investment firm Ardian and the management of Club Med.
The head of Gaillon Invest II, Jiannong Qiang, welcomed the success of the offer, saying "it brings to a close a period of uncertainty" for Club Med.
He said the investors would support the company's strategy to develop both in France and in emerging markets.
After weathering a rough business climate over the past decade, Club Med has improved its financial health by targeting higher-end clients, particularly among wealthier sections of emerging economies.
According to Club Med figures released in December, 80 percent of the 25,000 new clients the group attracted in 2013 were Chinese or Brazilian.
© 2015 AFP