Minor International has agreed to pay HNA, NH's biggest shareholder, 622 million euros (US$733.5m) for a 26.5% stake in the hotel group, subject to certain conditions.
Thailand-based Minor International has embarked on a takeover bid for Spanish hotel group NH Hotels after buying a stake from Chinese conglomerate HNA Group.
Minor International has agreed to pay HNA, NH's biggest shareholder, 622 million euros (US$733.5m) for a 26.5% stake in the hotel group, subject to certain conditions.
Minor announced last month it would purchase an 8.6% stake in NH Hotels from Oceanwood Capital for US$225 million.
After the conversion of some bonds to shares, it would take Minor's stake in NH to around 38%, exceeding the 30% ownership threshold beyond which Spanish law requires a full takeover be launched.
Minor said it plans to launch an all-cash public tender offer to acquire NH Hotel Group’s remaining shares.
“Today we are embarking on a new era, driving investment strategy to further cement our footprint in the European hospitality industry”, Dillip Rajakarier, CEO of Minor Hotels said in a statement.
“We will 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.
“The business network will allow the two companies to capitalise on our leadership positions in key growth areas, highly complementary asset and brand portfolio, technology platform and talented employees.”
In addition to owning, operating, and investing in 160 hotels under a variety of brands, Minor International also owns one of Asia’s largest restaurant companies and is one of the largest distributors of lifestyle and retail brands in Thailand, including Gap, Brooks Brother, Esprit, Charles & Keith, and more.
In 2016, Minor bought Portuguese hotel brand Tivoli Hotels and Resorts. NH has more than 370 hotels in 30 countries.