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Club Med set to back China bid this week

CRI, January 5, 2015 Adjust font size:

  Club Med. [File photo]

French holiday company Club Med is expected to back an offer from a consortium led by Chinese billionaire Guo Guangchang this week after Italian rival bidder Andrea Bonomi refused to raise his offer.

The Fosun Chairman's offer, which tops Bonomi's last bid of 24 euros per share, values Club Med at 939 million euros or about 1 billion U.S. dollars.

The Chinese offer has removed uncertainty over the future of struggling Club Med, which is fighting weaker demand in Europe and heavy restructuring costs.

Investors are hoping Club Med's new owners will invest in the operator's upscale repositioning and expansion in markets such as China, which should widen a client base historically dominated by Europeans.

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