Italian businessman Andrea Bonomi announced on Friday that he is backing down from the bid war for control over the resort operator, ending the longest takeover battle in French history.
Global Resorts, controlled by Mr. Bonomi, officially gave up on the 18-month bid war with the Chinese group Fosun International, five days ahead of the deadline for submitting new offers. The decision leaves Fosun as the sole bidder for one of the worlds largest tourism brands.
“The Club Med’s shares held by Global Resorts will be handed over to Gaillon Invest II or sold on the market,” Global Resorts said in a statement. Gaillon Invest II is controlled by Fosun.
The company outlined that “the current situation and the levels of valuation do not warrant further consideration of Club Med as an investment opportunity.”
However, Mr. Bonomi said he was happy that Club Med’s minority investors would benefit from Fosuns higher bid.
“We take note of the decision with satisfaction,” a spokeswoman for Fosun said Friday evening.
The takeover battle began in mid-2013 when the Chinese company made the first bid of €17 a share for the Club Med. However, the move was quickly met by Mr. Bonomis Global Resorts. The series of bids and small outbids lifted Club Meds shares to levels unseen since 2008.
Mr. Bonomi, who used its family-owned Strategic Holdings investment fund to purchase the initial 11% of the resort company, backed down from the bid war after Fosun offered €24.6 per share in late December, or €0.60 per share more than his latest offer.
Currently Global Resorts is the biggest shareholder in Club Med, holding a 18.9% stake in the company, followed by the 18.4% owned by the Chinese conglomerate. Mr. Bonomi was given until January 7th to submit a higher bid by Frances stock-market regulator AMF.
Club Med’s CEO Henri Giscard d’Estaing and its board have shown clear preference to Fosun, as they have supported its bids several times during the battle. Fosun, unlike Currently Global Resorts, has been on board with Club Med’s plan to expand in Asia and China.
Club Mediterranee SA lost 0.04% on January 2nd and closed at €25.09 in Paris, marking a one-year change of 44.11%. The company is valued at €807.18 million. According to the Financial Times, the 2 analysts offering 12-month price targets for Club Mediterranee SA have a median target of €20.00, with a high estimate of €23.00 and a low estimate of €17.00. The median estimate represents a 20.29 % decrease from the last price of €25.09.
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