The cramped flights and family quarrels mean the all-inclusive holiday is not for everyone. That is not the case for Fosun, however. China’s largest private conglomerate has made a friendly offer for France’s Club Méditerranée, along with a consortium including Paris-based Axa Private Equity and the holiday group’s management. The offer looks timely as Club Med comes under pressure from a struggling French holiday market and is restructuring in a push to become more upmarket.
The consortium has offered €17-a-share, or a 24 per cent premium to Club Med’s undisturbed share price. That looks generous but then some investors such as Rolaco Holding, have been buying shares since 2003 when shares were trading more than €100. They may, therefore, want to extract more from the consortium before approving the buyout.