Axa Private Equity and Chinese conglomerate Fosun have been dealt a blow after their takeover bid for Club Mediterranée has been delayed by an appeals court.
The bid for the package holiday company, which values it at €557m, was announced in May, and was supported by the management team, who intend to use the financing to reposition the business and expand into new markets.
However, a court in Paris has set 27 February as the date for hearing the complaints of two minority shareholder groups. CIAM, a French merger arbitrage fund, and minority shareholders’ association Adam objected to the offer price of €17.50 a share.
Julien Visconti, a lawyer representing CIAM, has argued that the deal allegedly raises conflicts of interest as experts hired to advise on the takeover were not independent. In addition, Visconti also says there is a lack of information on the benefits received by management. CIAM held a one per cent stake in the business when the appeal was made.Read More
by Hugh Carnegy
A joint €550m bid to buy out Club Méditerranée by Chinese and French investors is facing disruption after France’s market authority extended the takeover period indefinitely while two groups of minority shareholders fight the proposed deal in the courts.
... But Julien Visconti, an adviser to CIAM, which holds about 1 per cent of Club Med, told the AFP news agency last month that among its objections was a lack of information, including about “an enormous package of preference shares for management”. ...