Minor International, HNA Group Agree on NH Hotel Group Takeover

Minor International has reached an agreement with HNA Group to purchase an equity stake of 25.2 percent (on a fully-diluted basis) in NH Hotel Group in a two-tranche transaction valued at €619 million.

The purchase follows the hotel group’s earlier purchase of a 9.5 percent shareholding.

Minor also confirmed 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 Minor’s highest acquisition price in the last 12 month-period, currently €6.40 per share (subject to fair price adjustments).

Minor targets its shareholding in NH Hotel Group at around 51-55 percent and intends to keep NH Hotel Group as a publicly-listed company on the Madrid Stock Exchange.

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.

The share purchase from HNA Group will be in two tranches. The first tranche of 65.85 million shares, representing 16.8 percent shareholding on a fully-diluted basis, will be completed on or around June 15th.

The second tranche, consisting of 32.94 million shares or 8.4 percent on a fully-diluted basis, is expected to be completed in September 2018.