(WSJ) Club Méditerranée said Monday its board had unanimously lent support to a sweetened bid by a group led by China-based conglomerate Fosun International.
“The board has decided to recommend to its shareholders who wish to sell their shares to subscribe to this offer,” said the French resort operator in a statement.
Fosun’s offer is financially more attractive and includes guarantees that the new investors will pursue the group’s international expansion plans, added the board.
Last month, Fosun and minority partners offered to pay €22 ($28.38) for each Club Med share and €23.23 for each convertible bond, valuing the company at €839 million.
The bid marked the latest twist in the pursuit of Club Med that began more than a year ago when the Chinese group and its partners initially offered €17 a share, then raised it to €17.50.
The original takeover attempt was delayed for several months by a legal dispute initiated by minority shareholders and then disrupted by Italian businessman Andrea Bonomi, who made a competing offer through a private-equity fund he manages.
Club Med’s Chief Executive Henri Giscard d’Estaing said last month he supported the Fosun bid, which he called “friendly.” The CEO and other top executives will invest in the venture.