After twice extending the acceptance period for its offer to buy all of Rezidor Hotel Group AB's shares, HNA Tourism Group Co. Ltd.'s subsidiary, HNA Sweden Hospitality Management AB, is postponing the preliminary date of settlement for shareholders who accepted the offer during any of the acceptance periods to on or around June 9.
As a result of the delay, HNA is allowing Rezidor shareholders to back out and withdraw their earlier acceptances.
The company noted that it has yet to get regulatory approvals to transfer funds from China to settle the offer, and it added that such regulatory approvals are "unlikely" to be obtained in time for the settlement dates set for the initial acceptance period and both extended periods.
The offer's original acceptance period ended March 10, but it was later extended to March 24. The acceptance period was delayed a second time to April 7 to allow Rezidor shareholders to take into account proposals of Rezidor's nominating committee. The settlement dates for the three separate acceptance periods were supposed to be April 7, April 21 and May 5, respectively.
The new date for settlement is contingent upon the receipt of all regulatory and governmental clearances, approvals and decisions, and may be further postponed to up to nine months from the start of the initial acceptance period if the conditions are not met.
In December 2016, HNA offered to acquire all Rezidor shares for 34.86 Swedish kronor apiece, following its acquisition of Carlson Hotels Inc. from Carlson Hospitality Group Inc., which gave HNA ownership of 51.3% of all outstanding shares in Rezidor. Earlier in February, however, Rezidor advised its shareholders to reject the offer as it does not reflect Rezidor's financial value.
As of April 6, US$1 was equivalent to 9.00 Swedish kronor.