Fosun Gains on Club Med Takeover Bid With Axa: Hong Kong MoverStephanie Wong and Richard Weiss
Fosun International Ltd. rose the most in two months in Hong Kong trading after the investment company made a takeover bid yesterday for Club Mediterranee SA with investors including Axa Private Equity.
The Shanghai-based investment arm of China’s biggest closely held industrial group climbed 4.6 percent to HK$5.52, the biggest gain since March 27. The benchmark Hang Seng Index advanced 1.1 percent.
Fosun, controlled by billionaire Guo Guangchang, already owns about 10 percent of the Paris-based resort operator, adding to its investments in property, mining and drugs. Club Med Chief Executive Officer Henri Giscard D’Estaing has unveiled plans to more than double the number of customers in China in three years as wealth in the region grows faster than elsewhere.
Efforts to strengthen the business will intensify, as the French market, the resort operator’s largest, remains “difficult,” according to a Fosun statement yesterday. Club Med has said it will open new resorts in emerging economies.
The investors offered 17 euros for each share of the Paris-based all-inclusive resort operator, Axa and Fosun said yesterday in a statement. Company management is also involved in the bid, according to a separate statement yesterday.
Club Med rose 22 percent, the most since at least 1989, to 16.95 euros at the close in Paris yesterday.
D’Estaing, the son of former French president Valery Giscard D’Estaing, has led Club Med since 2002 and closed resorts in Europe and expanded in Asia to improve profitability. The operator of all-inclusive resorts started with a tent village on the Mediterranean island of Mallorca in 1950.
The deal would create a holding company owned by Fosun, Axa and Club Med management, ending almost half a century of public listing. The companies plan to own 46 percent each of the holding company that would own the Club Med shares, with management holding 8 percent.