Minor International (Mint) has acquired an additional 25.2% stake in NH Hotel Group for €619m (£543m).
This follows the Thailand-based company’s earlier purchase of a 9.5% shareholding in the Spanish NH Hotel Group. Mint also confirms it will launch an all-cash public tender offer to acquire NH Hotel Group’s remaining shares, targeting its shareholding at around 51-55%.
It said the offer would not be lower than Mint’s highest acquisition price in the last 12-month period, currently €6.40 per share. The acquisition will be funded through debt instruments.
“Today we are embarking on a new era, driving investment strategy to further cement our footprint in the European hospitality industry”, said Dillip Rajakarier, chief executive of Minor Hotels.
“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. Mint can also support the NH Hotel Group with its food and beverage expertise where appropriate to enhance customer experience and maximise revenue potentials.”
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 on or around 15 June 2018. The second tranche, consisting of 32.94 million shares or 8.4% 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.
NH Hotels has a portfolio of nearly 400 hotels globally, including one in the UK, the NH London Kensington (pictured). The group also plans to launch its Nhow brand in London, with an eight-storey, 190-bedroom hotel, set to open in Shoreditch in 2019.
Minor Hotels also owns a majority shareholding in Corbin & King, which operates sites including the Wolseley, the Delaunay and Brasserie Zédel. The hotel company operates more than 150 sites globally.