Fosun International Limited has finally closed the deal on French holiday resorts group Club Mediteranee. The landmark agreement would see the Chinese firm led by Guo Guangchang take a majority control of the famous vacation group.
France's Financial Markets Authority announced on Feb. 12 that the Chinese conglomerate acquired 98.2 percent of Club Med. The rate is much higher than the expected 50-percent share offering, which was opened to the public.
While the rate is a success, the acquisition fell short of the required 95-percent ownership, which would force the remaining shareholders to offer their stocks for sale.
The cinched deal ended a takeover struggle, which began two years ago in May 2013, that is considered the longest in the Paris Bourse.
Fosun paid 24.60 euros per share for the high-end resorts group, which would put a price tag of 939 million euros to Club Med. This forced rival Italian tycoon Andrea Bonomi to give up his pursuit and let Fosun take over.
Bonomi initially outbidded Gaillon Invest II, the investment firm owned by Fosun, with 24 euros per share in Dec. 2014. Gaillon's first over in May 2013 was a low 17 euros, which was easily trumped by Bonomi until finally it closed on the latest offer made by Gaillon that prompted the Italian to back out.
As the deal has been finalized, Gaillon Invest chairman has expressed his desire to move forward with the company's plans for the high-end resorts group.
"We can now get on with the work we started almost five years ago to support the development of Club Med in France and in fast-growing markets," he said.
Club Med is a pioneer in offering all-inclusive holidays to the wealthy since 1950s. However, the company was affected by competition from other hotel groups and has suffered alongside the weak economy of Europe.
Under the takeover, the holiday resorts group, which has facilities as far as the Alps and in China, would remain under the management of Chief Executive Henri Giscard d'Estaing.