Minor To Acquire NH Hotel Group
Bangkok-based restaurant, hospitality and lifestyle company to buy 25% stake in Chinese urban hotel operator
Thai hotelier Minor Intl. (MINT) has reached an agreement with Chinese conglomerate HNA Group to purchase an equity stake of 25.2% in Madrid-based NH Hotel Group. Valued at $727.74 million, the transaction follow’s Minor’s earlier acquisition of a 9.5% stake in NH, whose hotels are primarily located throughout Europe and Latin America. With this deal, MINT will own more than a 30% of the company and can initiate a full takeover.
“Today we’re embarking on a new era, driving investment strategy to further cement our footprint in the European hospitality industry,” says Dillip Rajakarier, ceo, Minor Hotels. “We’ll 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. MINT can also support the NH Hotel Group with its food & beverage expertise where appropriate to enhance customer experience and maximize revenue potentials.”
The share purchase from HNA 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 June 15. The second tranche, consisting of 32.94 million shares, or 8.4% on a fully-diluted basis, is expected to be completed in September. MINT also plans to launch an all-cash public tender offer to acquire NH’s remaining shares (subject to approvals).