LONDON, June 26 (Reuters) - A takeover of holiday resorts group Club Med by French buyout house AXA Private Equity and China’s Fosun International’s will be financed with around 240 million euros ($313.79 million) of bank loans, banking sources said on Wednesday.
AXA and Fosun won over Club Med on Tuesday with an improved 557 million euro offer, equating to 17.5 euros a share for the stock they did not already own, up from a previous offer of 17 euros.
The Club Med deal will be welcomed by the loan market eager for new deals following a dearth of M&A so far this year, bankers said.
The takeover will be paid for with over 50 percent equity provided by the private equity buyers and the rest will be financed with loans provided by Societe Generale, Natixis and Credit Agricole, bankers said.
The loans will include a tranche that will be syndicated to institutional investors, they said.
AXA declined to comment and Fosun was not immediately available to comment.
Club Med operates 70 resorts worldwide and is looking to accelerate expansion plans in markets such as China, Russia and Brazil. ($1 = 0.7649 euros) (Editing by Jane Merriman)