HNA to Grab 30% Stake in NH by Buying Intesa´s Shares

23/05/2014 – Expansion

The NH Hoteles chain became the apple of the Chinese group´s eye that keeps gambling on it. HNA entered the holding in 2013 and at the beginning of this year the firm acquired a considerable share from Amancio Ortega´s Inditex, becoming the chain´s main stakeholder.

However, the recent decisions of NH thwarted HNA´s plans as the chain is going to pay in shares to Intesa San Paolo, also NH´s shareholder, for the 45% stake the entity owns in the Italian branch of NH.

Intesa will be paid in 42 million new shares valued at €200 million and the bank´s stake will boost from 4.52% to 16.52%.

On the other part, the rest of the stakeholders will see their shares shrinking. To illustrate, HNA´s stake acquired for €287 million will be reduced from 24.05% to 21%. In order to preserve its position, the Chinese giant is negotiating purchase of a part of Intesa´s shares equal to around 8% stake worth of €133 million. HNA wants to avoid holding more than 30% as then it would have to submit a takeover bid for the entire chain.

 

Original article: Expansión (by Y. Blanco & S. Saiz)

Translation: AURA REE

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