Club Med Surges to Five-Year High After $1.1 Billion Bonomi Bid
Published on Jul 1 2014 10:18 AM in General Industry
Club Méditerranée SA surged to its highest price for over five years in Paris after funders associated with Italy’s Andrea Bonomi said they plan to make a bid valuing the holiday company at €790 million ($1.1 billion).
Club Med shares rose as much as 10 per cent to €21.49 on the resumption of trading after being suspended at €19.51 yesterday ahead of the Bonomi-led group’s statement.
The bid of €21 a share is 20 per cent higher than the €17.50 proposed last year by Gaillon Invest, a vehicle created by Ardian Sarl -- the former Axa Private Equity -- and Chinese investment company Fosun International Ltd. Bonomi is also offering €22.41 a share for a convertible bond.
The offer pits the former Banca Popolare di Milano Scarl chairman against rival Club Med shareholder Ardian and its Chinese backer in a tussle for one of Europe’s best-known tourism names amid higher demand for upmarket holidays.
Club Med shares were trading up 9.7 per cent at €21.41 as of 12:08 p.m. in the French capital after trading resumed at noon, 41 cents above the Bonomi offer price and the highest since Oct. 2, 2008. That takes gains this year to 23 per cent.
Bonomi, who owns about 10 per cent of the Paris-based resort company, will make his offer via Global Resorts SAS, in which his private equity company Investindustrial has a 91 per cent stake, with the remainder owned by South African billionaire Sol Kerzner, management of Spanish amusement park operator PortAventura and Brazilian private-equity firm GP Investments.
The formal offer could be made in two to three weeks’ time, with a tender period running through the end of August or beginning of September, Bonomi said yesterday.
“We have taken due note of the announcement made by Investindustrial,” a spokeswoman for Gaillon said, adding that it will “examine the project and its terms.” She declined to comment on the possibility of Gaillon raising its bid.
Bonomi yesterday said Intesa SanPaolo SpA and UniCredit SpA will help finance his offer. Investindustrial funds already hold leisure-industry assets via PortAventura, which plans to build a park dedicated to the Ferrari SpA auto brand at its resort near Barcelona. Another theme destination, Gardaland, on the shares of Lake Garda, was sold at the end of 2006.
Investindustrial also sold Italian motorcycle maker Ducati Motor Holding SpA to Volkswagen AG two years ago, and owns a stake in luxury carmaker Aston Martin Holdings UK Ltd.
Bloomberg News, edited by ESM