NH Hoteles rejects the merger offer with Barceló

NH Hoteles rejects the merger offer with Barceló


However, for the first time it has opened the door to potential offers, which in its opinion "are able to generate the set of shareholders” a “real value", explains the company in a Significant Event referred to the National Securities Market Commission (CNMV).

NH has also opposed that the rejection of the offer "does not condition or prevent the analysis of other future strategic opportunities, which will be evaluated based on the real value that they are able to generate to the NH Hotel Group's shareholders, in the market of consolidation trends prevailing in the sector ".

"The exchange ratio does not reflect the relative valuation of both companies (even less with a perimeter adjusted to the relevant business of the Barceló Group), nor does it offer a real control premium over the NH market valuation, nor does it take into account its potential of revaluation in an independent way", he argues in his note.

“Grupo Barceló's offer does not reflect the potential for growth in NH's results, nor the value of its urban assets owned in Europe (as shown by the recent sale of the Barbizon hotel in Amsterdam), nor the opportunity to generate profits with its balancing mix of contracts in management and leasing, nor the optimization of its operational and financial structure”, in addition to pointing out that “the Board has assessed very negatively that the Barceló Group's offer lacks liquidity for NH shareholders".

Barceló proposed merging its businesses to create a hotel giant, where the company chaired by Pedro Simón would hold a 60% stake in the resulting entity, as well as a large majority in the management body. The Mallorcan company valued NH at €2.480 million, at a price of €7.08 per share, which represented a premium of 27% on the average price of the three months prior to October 30. Simón Pedro Barceló had ruled out improving the offer that his group has made to merge NH.

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