Minor International (MINT) has reached agreement to acquire 30,000,000 shares in NH Hotel Group in a transaction valued at EUR 192 million, which together with its existing shareholding will increase MINT’s stake in NH Hotel Group to 8.6 per cent on a fully diluted basis.
NH Hotel Group is the sixth largest hotel chain in Europe and this investment offers important strategic benefits to MINT which, with its deep hospitality and food & beverage experience, also brings strategic value to the NH Hotel Group. The investment demonstrates MINT’s strategy of pursuing financially attractive investments which are accretive to MINT, with estimated EV/2018EBITDA of 10.6x.
NH Hotel Group has a portfolio of 382 hotels and resorts with 59,350 keys spanning across 30 countries in Europe, the Americas and Africa. Dillip Rajakarier, CEO Minor Hotels, commented, “This investment represents a significant milestone for Minor Hotels. We are excited by the opportunity to accelerate our global exposure with our investment in NH Hotel Group, which has a highly complementary business and asset portfolio to MINT. The investment is financially attractive, with high liquidity on the Madrid Stock Exchange and proven performance by the business. Over the past few years, NH Hotel Group’s board of directors and management team have re-invigorated the business and delivered strong business performance in line with its five-year strategic plan. As a key shareholder in the business, we look forward to supporting the management team as a strategic shareholder to continue this success and build long-term shareholder value for NH Hotel Group and its shareholders including MINT. MINT can also support the NH hotels with its food & beverage expertise where appropriate to maximize financial performance and enhance customer experience.”
