Minor International has reached an agreement with HNA Group to purchase an equity stake of 25.2 per cent in NH Hotel Group in a two-tranche transaction valued at €619 million ($727.7 million).
The purchase follows Minor’s earlier purchase of a 9.5 per cent shareholding in NH Hotel Group.
The share purchase from HNA Group will be in two tranches. The first tranche of 65.85 million shares, representing 16.8 per cent shareholding on a fully-diluted basis, will be completed on or around June 15. The second tranche, consisting of 32.94 million shares or 8.4 per cent on a fully-diluted basis, is expected to be completed in September.
Minor targets its shareholding in NH Hotel Group at around 51-55 per cent and intends to keep NH Hotel Group as a publicly-listed company on the Madrid Stock Exchange with strong corporate governance.
“Today we are embarking on a new era, driving investment strategy to further cement our footprint in the European hospitality industry”, said Dillip Rajakarier, CEO Minor Hotels. “We will be able to create a network of over 540 hotels with a reach across Asia, Oceania, the Middle East, Africa and Europe, all of which are important hospitality regions around the world. The business network will allow the two companies to capitalise on our leadership positions in key growth areas, highly complementary asset and brand portfolio, technology platform and talented employees. Minor can also support the NH Hotel Group with its food and beverage expertise where appropriate to enhance customer experience and maximise revenue potentials. Together, we will be well-positioned to achieve greater success, provide greater value to customers and create more exciting growth opportunities than either company could achieve alone.”
In addition, Minor also announced its intention to follow Spanish regulations, as applicable, to launch an all-cash public tender offer to acquire NH Hotel Group’s remaining shares, under which the applicable price shall not be lower than Minor’s highest acquisition price in the last 12 month-period, currently being €6.40 per share. The proposed tender offer is subject to the approvals of Minor’s shareholders, the National Securities Market Commission of Spain (CNMV) and clearance by relevant anti-trust authorities. The final acquisition percentage will be dependent on NH Hotel Group’s existing shareholders’ decision to sell their shares at Minor’s proposed tender offer price. The tender offer process is expected to take 3-5 months after the launch of the tender offer. - TradeArabia News Service
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