Club Med, the French holiday firm which pioneered the concept of the all-inclusive holiday resort in the 1950s has, like most holiday firms, struggled to remain profitable amid the economic downturn in Europe. The firm now looks set to be taken over by two of its major shareholders, AXA Private Equity and Fosun International of China.
News of the takeover bid, which is described as “friendly”, led shares in the holiday firm to jump 22% at the close of business in Paris on Monday 27 May 2013. This was reflected in a share price of € 16.96 per share, the highest since the early 90s.
While the operator will continue its efforts to strengthen its position in the French market, the operator's largest, analysts see the bid by the partly Chinese owned Club Med as an effort to accelerate its shift towards faster growing emerging markets such as Asia as well as continuing its efforts to offer a more up-market product.
Under the deal, both major shareholders would each hold 46% of the shares in Club Med with the remaining 8% held by the operator’s senior management team. The deal, if approved, would end almost 50 years of Club Med's public listing.
Source: Bloomberg