AccorHotels has filed a notification with the Polish Financial Supervision Authority with the intent to launch a tender offer to acquire over 21 million shares of Warsaw-based hotel operator Orbis. The shares are not owned by Orbis and represent 47.31% of the company.
Orbis is one of the largest hotel operators in Central and Eastern Europe and the exclusive master franchisee of certain AccorHotels brands in the region. Its portfolio has 128 hotels with 21,000 rooms in 16 countries under the Sofitel, Pullman, MGallery, Novotel, Mercure, ibis, ibis Styles and ibis budget brands.
The offer will be priced at $22.89 per share. The proposed deal represents a 20% premium over the closing price of the day prior to the announcement on Tuesday, an 11% premium over the volume-weighted average price of the last three months, and a 3% premium over the volume weighted average price of the last six months. Assuming AccorHotels acquires 100% of the shares it doesn’t already own, the overall cash consideration would amount to $499.2 million.
With this deal, AccorHotels wants to consolidate its leadership in Central Europe and improve optionality on Orbis’ asset portfolio management. If upon the completion of the deal AccorHotels holds shares in the share capital of the company of at least 90%, AccorHotels intends to proceed with a squeeze-out of Orbis’ minority shareholders.
The move is just another step forward in AccorHotels’ acquisition plan, which has been on a tear this year. Just last month, the company closed on its $319 million acquisition of sbe Entertainment Group. In July, the hotelier announced its intention to acquire an 85% stake in Louisville, Kentucky-based 21c Museum Hotels. In May, AccorHotels inked a deal to acquire Atton Hoteles and finalized its $1.2 billion buy of Melbourne-based Mantra Group. Just before that, the company announced it would acquire Mövenpick Hotels & Resorts. In April, the hotelier signed a strategic agreement to acquire a 50% stake in South Africa-based Mantis Group.
Photo of ibis Styles Wrocław guestroom: Courtesy of Orbis