Thailand-based Minor International (MINT) has acquired an additional 25.2 per cent stake in Europe’s NH Hotel Group for 619 million euros (US$730 million) from Chinese conglomerate HNA Group.
This follows MINT’s earlier purchase of a 9.5 per cent shareholding in NH Hotel, raising its stake in the Spanish hotel group to 34.7 per cent, which according to a Reuters report will exceed the 30 per cent ownership threshold to initiate a full takeover of the company under Spanish law.
MINT plans to launch an all-cash public tender offer to acquire NH Hotel Group’s remaining shares, with a shareholding target of 51 to 55 per cent. It intends to let NH Hotel remain as a publicly-listed company on the Madrid Stock Exchange.
The purchase will enable MINT to “further cement (its) footprint in the European hospitality sector” and expand its network to 540 hotels worldwide, Minor Hotels’ CEO Dillip Rajakarier said in a statement.
The offer will not be lower than MINT’s highest acquisition price in the last 12-month period, currently 6.40 euros per share. The acquisition will be funded through debt instruments.
The share purchase from HNA Group will be in two tranches. The first tranche of 65.9 million shares, representing 16.8 per cent shareholding on a fully diluted basis, will be completed on or around June 15, 2018. The second tranche, consisting of 32.9 million shares or 8.4 per cent on a fully diluted basis, is expected to be completed in September 2018.
The final acquisition percentage will be dependent on NH Hotel Group’s existing shareholders’ decision to sell their shares at the proposed tender offer price, a process which is expected to take three to five months after the launch.