CHINA’S HNA Group will strengthen its control over NH Hoteles through a 132 million euro (US$179.6 million) agreement to buy over the stake held by Italian investment bank Intesa San Paolo.
Already the biggest shareholder (TTG Asia e-Daily, February 7, 2014), HNA will boost its stake to 29.5 per cent of the budget business hotel chain if it gets permission for the deal from the Chinese government.
The move stops just short of the 30 per cent share that would have obliged the Chinese group to make a full takeover bid.
“At this moment (we have) no intention of drawing up a takeover bid,” HNA said.
A spokesman for NH said the two groups were still working on creating closer commercial ties between the two.
An announcement had been expected late last year that would see NH becoming directly involved in the management of HNA properties. “The latest deal demonstrates the interest of HNA in NH and will no doubt strengthen the viability of this project,” he said. “It won’t take much longer.”
