HNA Group has made a firm offer to acquire the FRAM Group at a reported fixed price of 40 million euros. French tour operator Selectour Afat will also invest with HNA for a 10% stake of the acquired shares.
AFP reported that FRAM Group said in a statement: “We have received a firm acquisition offer yesterday from HNA Group and Selectour Afat. HNA Group began the due auditing process on September 9 and the auditors had endorsed the plan and submitted the fixed offer to FRAM Group today.”
FRAM Group also said they received a separate offer from French online tourism supplier Karavel Promovacances Group.
FRAM Group said: “The offers from HNA Group and Karavel Promovacances Group are proof of the company’s potential for development and is an important step for the group’s future. Our management will take responsibility to choose the share transaction that will most benefit its shareholders and employees.” It will make its decision within the next few days.
Up until now, the two branches of FRAM Group’s founding family have always held 80% of the company’s shares, while Air France holds a 9% stake. It currently has 560 employees and over 50 travel agencies.
FRAM Group was established in 1949 and is one of France’s largest national travel company servicing 50,000 clients this summer alone. It has established a strong presence in the Mediterranean coast, but it has been reeling from the Arab Spring movement.
Its net revenue increased by 4.4 million euros in 2014 after several years in the red. Despite annual loss of 8%, it still manages to turn over 373 million euros a year. Its decision to invite investments from reputable companies is to ensure the group’s survival and stable growth in the future.(Translation by David)
