Occidental Hotel Shareholders Take BBVA, Pontegadea £706 Million Bid

Top stockholders from Occidental Hotels -Cartera Hotelera and La Caixa- have formally accepted a £706 million bid made by BBVA and Pontegadea for the purchase of the hotel chain, Spain’s National Stock Exchange Commission (CNMV is the Spanish acronym) reported.

According to the deal, the BBVA buying group and Pontegadea are taking up Occidental’s debt of £272 million, plus £434 million tacked on the value of the company’s total amount of assets.

The £434 million are the sum of all ordinary and high-end shares owned by Occidental hotels (£374.5 million in all) plus half of the capital in possession of Soteltur International and Soteltur, owned y La Caixa (£59.5 millions).

The bid includes the buyout of three quarters of ordinary shares and all of Occidental Hotels’ high-end stocks -currently in the hands of Sil Investments (Mercapital Group), La Caixa and other lesser shareholders- as well as 50 percent of shares owned by Soteltur International and Solteltur.

Both bidders will take over as top stockholders and senior members of the Occidental Hotels Board of Directors, right now led by Gregorio de Diego. The contract to finalize the deal is expected to be inked a few weeks from now.