Minor acquires 25% stake in NH Hotel group

Minor International (MINT)  has announced that it has reached an agreement with HNA Group to purchase an equity stake of 25.2 per cent (on a fully-diluted basis) in NH Hotel Group in a two-tranche transaction valued at EUR 619 million. The purchase follows MINT’s earlier purchase of a 9.5 per cent shareholding (on a fully-diluted basis) in NH Hotel Group. MINT also confirms that it will follow Spanish regulations as applicable to launch an all-cash public tender offer to acquire NH Hotel Group’s remaining shares. Such offer would be at a price not lower than MINT’s highest acquisition price in the last 12 month-period, currently EUR 6.40 per share (subject to fair price adjustments). MINT targets its shareholding in NH Hotel Group at around 51%-55% and intends to keep NH Hotel Group as a publicly-listed company on the Madrid Stock Exchange with strong corporate governance. Based on the target ownership level, the acquisition will be funded through debt instruments, while 2019E interest-bearing-debt to equity ratio is expected to be maintained at a comfortable level of 1.3x.
“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 capitalize on our leadership positions in key growth areas, highly complementary asset and brand portfolio, technology platform and talented employees.”