Bangkok-based hospitality company Minor International PCL is planning a takeover of NH Hotel Group SA, after buying a 25.2% interest in the Spanish hotelier from Chinese conglomerate HNA Group Co. Ltd. in a €619 million two-tranche deal.
The stake purchase from the Chinese group will raise Minor's ownership in the hotel company to 34.7% from 9.5%, qualifying it under Spanish law to kick-start a full takeover offer that requires a minimum shareholding of 30%.
The Thai hospitality company confirmed that it will adhere to Spanish regulations and launch a minimum all-cash public tender offer of €6.40 each for NH Hotel's remaining shares.
Minor expects the tender offer process to run for three to five months after the offer is launched, subject to the consent of shareholders, approval of the National Securities Market Commission of Spain and clearance by relevant anti-trust authorities.
Through the offer, Minor aims to own an about 51% to 55% interest in NH Hotel, which will continue to trade as a publicly listed company on the Madrid Stock Exchange. In the first tranche, Minor will acquire 65.85 million shares, or a 16.8% stake, from HNA on or around June 15. The second tranche involving 32.94 million shares, or an 8.4% interest, is expected to be completed in September.
Minor will use proceeds from debt instruments to finance the deal, according to a release.
The company plans to establish a network of over 540 hotels across Asia, Oceania, the Middle East, Africa and Europe with the deal, said Minor CEO Dillip Rajakarier.
