Thailand-based Minor International (MINT) has purchased an additional 25.2% stake in Spain’s NH Hotel Group from Chinese conglomerate HNA Group for 619 million euros (US$732 million) and is bidding for a takeover of the company.
The latest acquisition follows MINT’s earlier purchase of a 9.5% shareholding in the Spainish hospitality group, raising its stake to 34,7% and exceeding the 30% ownership threshold that allows for a full takeover of the company under Spanish law.
MINT announces in a statement it will launch an all-cash public tender offer to acquire the remaining shares of NH Hotel Group. The offer, funded through debt instruments, will be at a price not lower than its highest acquisition price in the last 12 month-period, currently 6.40 euros per share.
The Bangkok-based company targets its shareholding in the Spanish company at around 51% to 55% and intends to keep NH Hotel Group as a publicly-listed company on the Madrid Stock Exchange.
The share purchase from HNA Group will be in two tranches. The first tranche of 65.85 million shares, representing 16.8% shareholding on a fully-diluted basis, will be completed by the middle of this month. The second tranche, consisting of 32.94 million shares or 8.4% on a fully-diluted basis, is expected to be completed in September.
According to the company, the final acquisition percentage will be dependent on NH Hotel Group’s existing shareholders’ decision to sell their shares at MINT’s proposed tender offer price. This process is expected to take three to five months after the offer launch.
Hesperia Sabinal Hotel n Spain – one of the properities under NH Hotel Group
NH Hotel Group operates 382 hotels and 59,350 rooms in 30 markets across Europe, the Americas and Africa.
MINT’s majority stake in the Spanish hotel chain would help Minor Hotels, the hotel arm of the Thai global company, cement the group’s footprint in the European hospitality industry.
In stating this, Minor Hotels’ CEO Dillip Rajakarier said: “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.”
Currently the group has a portfolio of 161 hotels and serviced suites under the Anantara, AVANI, Oaks, Tivoli, Elewana, Marriott, Four Seasons, St. Regis, Radisson Blu, The Beaumont and Minor International brands in 26 countries.
As MINT is also a major player in the restaurant scene, one of its three core business in addition to lifestyle brand distribution, Rajakarier added the company could help NH Hotel Group in the F&B segment.
“MINT can also support the NH Hotel Group with its food & beverage expertise where appropriate to enhance customer experience and maximize revenue potentials.”
• All images credit: NH Hotel Group
