PARIS -- Shares in Club Mediterranee rose sharply Monday on word that the iconic French vacation resort operator's two largest shareholders are launching a buyout.
The offer by Axa Private Equity of France and Fosun, a Shanghai, China-based investment company, values Club Med stock at 556 million euros ($719.41 million).
Axa PE and Fosun already own a combined 19.33% of Club Med shares representing 24.87% of the voting rights. They are offering 17 euros a share for the rest of Club Mediterranee's stock.
In a statement, Axa PE and Fosun said the offer would be made in the coming days.Club Med shares jumped 22% to 16.95 euros following news of the planned offer. Founded in 1950, Club Med operates about 80 resorts in Europe and around the world.