• Transaction / Assets
    19.5% of Bay Hotels & Leisure
  • Seller
    Grupo Barceló
  • Buyer
    Hispania
  • € MM
    172.4

Hispania Completes Purchase of Barceló’s Remaining Stake in Bay for €172.4M

27 December 2017 – El Economista

Hispania has acquired the 19.5% stake that the Barceló Group still held in the Socimi Bay Hotels & Leisure (BAY) for a total amount of €172.4 million, according to a report filed by the company on Wednesday with Spain’s National Securities and Exchange Commission (CNMV).

As such, the Socimi in which George Soros holds a stake now owns 100% of BAY, given that in October 2015, it acquired 80.5% of the company from Barceló.

As a result of the transaction, the parties have agreed to extinguish the contract between the shareholders relating to BAY and to novate certain terms of the investment contract signed when Hispania first entered BAY’s share capital.

The amount of the transaction also includes: the settlement of an incentive detailed in the contract between the shareholders for an approximate amount of €155 million; the expected dividend to be paid by BAY for 2017 amounting to €10.7 million; as well as certain compensation and/or liquidation payments resulting from the termination of the shareholder contract and the novation of the investment contract.

The total price of the operation shall be made in two payments: a first payment amounting to €80 million, which was paid at the same time as the shares were transferred to Hispania; and a second payment, amounting to €92.4 million, which will be paid on 28 February 2018.

The Socimi has specified that the sale and purchase contract anticipates certain upwards movements in the price, agreed in the case of the subsequent resale by Hispania of the acquired stake and only provided certain circumstances arise.

At the same time, the Barceló Group has notified BAY that it is exercising the sale option that it holds over the Hotel Barceló Marbella for €19 million. That transaction is expected to be executed before 28 February 2018.

Original story: El Economista

Translation: Carmel Drake

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