Minor increases its stake in the NH group14 June 2018
It acquires 30 million shares valued at 192 million euros, giving it an 8.6% stake in the group
The Thai company Minor International (Mint) has increased its stake in NH Hotel Group to 8.6% through the acquisition of 30 million shares valued at 192 million euros. It thus reinforces one of the three branches it has –the hotel branch–, along with the restaurant sector and the distribution of lifestyle brands.
Mint's investment in the NH group marks a strategic step toward increasing its weight in Europe's sixth largest hotel chain, and one of the 25 most important in the world. At the same time it aims to contribute its own experience in both the hotel and restaurant sector.
Both groups could mutually reinforce each other in terms of the geographic scope of their hotels. NH's four main areas of influence –Spain, Benelux, Central Europe and Italy– will make a good fit for Mint's presence in Asia, Australia, Middle East and Europe.
NH's strong growth trajectory is one of the reasons Mint has opted to undertake this transaction, which consolidates its presence in Europe after the 2016 acquisition of Tivoli Hotels & Resorts, mainly established in Portugal and Brazil.
According to Dillip Rajakarier, CEO of Minor Hotels: “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”.
In regard to its financial performance, Rajakarier adds: “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”.
Finally, Rajakarier refers to the synergies between both companies: “Mint can also support the NH hotels with its food and beverage expertise where appropriate to maximize financial performance and enhance customer experience”.