France's Club Mediterranee to be sold to consortium of French and Chinese investors

By IVCPOST Staff Reporter

Jul 17, 2013 05:04 AM EDT

France's market authority, Autorité des Marchés Financiers, said that it had permitted the proposed takeover of Club Mediterranee by a consortium led by Fosun, a Chinese fund group. Club Mediterranee is an up-market holiday company and is part of a greater French tourism sector which was efficiently restructured in the face of financial crisis in Europe.

The two buyers have sought to settle potential objections in French political arena. Some feared that the largely French enterprise could possibly come under Chinese control. The French agency explained that the enhanced offer of  EUR17.50 per Club Mediterranee share by French group AXA Private Equity and Fosun was valid. AXA Private Equity and Fosun are already the two principal shareholders of Club Mediterranee.

The board of Club Mediterranee, otherwise known as Club Med, voted in June unanimously in favour of the offer which valued the company at EUR556.89 million US$732 million.

Club Med will continue to be a French company because majority control of its capital will remain in French hands.

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