Tag: Charles Mobus

Oceanwood: Supported By 42%+ Of NH’s Shareholders

16 June 2016 – Expansión

The investment fund Oceanwood is gaining support in NH in its crusade against the Chinese group HNA – the Spanish hotel chain’s majority shareholder with its 29.5% stake – and now has the backing of more than 42% of the shareholders, who will vote in favour of its proposals at the next General Shareholders’ Meeting scheduled to be held on 21 June.

Specifically, Oceanwood, with its 11% stake, will be supported by high profile shareholders such as Hesperia and Henderson, as well as other institutional investors, according to market sources.

At the Spanish chain’s next General Shareholder’ Meeting, a vote will be taken, at Oceanwood’s petition, regarding the departure of HNA’s four directors, including Charles Mobus – Co-Chairman of NH – due to a possible conflict of interest that has arisen as a result of the Chinese group’s recent purchase of Carlson.

The fund has proposed that Paul Johnson, Fernando Lacadena, María Grecna and José María Cantero de Montes-Jovellar take over from the Chinese directors. NH’s share price fell by 3.37% on the stock exchange yesterday, to €4.16 per share.

Original story: Expansión (by R.Arroyo)

Translation: Carmel Drake

War Between NH’s Presidents Over HNA’s Role On The Board

2 June 2016 – Cinco Días

The investment funds that hold share capital in NH and critics of the role played in the hotel chain by HNA’s Directors have obtained the support of a heavyweight: the co-President of the Hesperia Investor Group, José Antonio Castro, who is also the second largest shareholder with a 9.27% stake.

José Antonio Castro, representative of Hesperia and co-President of the hotel chain, has acknowledged in a letter to two of the investment funds that hold stakes in NH, namely Henderson and Taube, that “a clear conflict of interest exists in the company for our shareholder HNA, following its agreement to purchase Carlson Rezidor and in particular, for the Board member and co-President, Charles B. Mobus”.

In his letter, Castro noted that NH’s Board of Directors ruled on 10 May that the role played by Mobus as advisor to the purchase of Carlson Rezidor did not compromise his position as the co-President of NH. At that meeting, the hotel’s management body agreed to put the necessary mechanisms in place to analyse a possible conflict of interest with HNA’s representatives. “However, that committee has not been created yet”, he said.

Hesperia’s representative confirms that his position regarding Mobus has changed with respect to the view he held at the Board meeting on 10 May and he justifies that decision by explaining that the HNA representative had informed some of the company’s shareholders that he had been authorised by the Board to go ahead with the Carlson Rezidor transaction. “That is not true. He tried (to obtain approval), that part is true, but the Board was not in agreement”.

Castro also justifies his change of heart by explaining that Mobus informed shareholders “that the Board of Directors knew that he was acting as advisor to the transaction. But, that is not true. He never told them”, he states in the letter, in which he also confirms that Mobus’ role is to advise HNA in its plans for the hotel industry, which involves the consolidation of its subsidiaries, something that he acknowledges, according to Castro, in the letters sent to other shareholders about the integration of NH and Rezidor or between NH and Carlson.

The businessman also acknowledges that during the last 20 days, NH has had “poor corporate governance”. In this way, Castro thinks a new Board meeting should be convened to review the latest agreements reached with respect to HNA’s possible conflict of interest.

Original story: Cinco Días (by L. Salces)

Translation: Carmel Drake

NH’s Shareholders Will Analyse Removal Of HNA’s Directors

26 May 2016 – Expansión

Oceanwood Capital, the fund that owns a 10% stake in the NH Hotel Group, has submitted a letter to the hotel company requesting that it adds some new items to the agenda for the General Shareholders’ Meeting, to be held on 21 June. It is requesting the removal of the four directors appointed by HNA, the Chinese company that owns a 29.5% stake in NH, i.e. the group’s majority shareholder.

Oceanwood believes that there is a clear conflict of interest that prevents those directors from defending the rights of all of the shareholders, rather than just those of the investment group that they represent. At the same time, Oceanwood has proposed the appointment of four external directors, because they cannot be classified as independent given that they have not been proposed by the appointments committee.

The document, which was submitted by due legal process yesterday, the last day on which it was legally admissible, requests the removal from the Board of the current Co-Chairman of the company, Charles Mobus, as well as of Ling Zhang, Xianyi Mu and Haibo Bai. The justification for these removals lies in the conflict of interst that now exists due to the structural and permanent competition between NH and its shareholder HNA, after the latter reached an agreement with Carlson Rezidor, a hotel group that competes directly with NH in Germany, the Netherlands and Benelux – particularly in Berlin, Brussels and Amsterdam – . Oceanwood asks not only that the General Shareholders’ Meeting removes these directors, but also that HNA is prevented from exercising its right to proportional representation as a result of its shareholding, until the aforementioned conflict of interest is eliminated.

In its request for the removal of the directors, Oceanwood emphasises, amongst other things, that the Chairman advised HNA on its purchase of Carlson Rezidor and that during that process, the possibility was proposed of the Chinese group submitting a takeover bid for 100% of NH. Moreover, it indicates that the three Chinese directors rarely attend board meetings in person, and instead choose to channel their votes through Mobus.

Support

In parallel to these removals, the fund, which hopes to have the support of other institutional investors to reach the 40% threshold, proposes the appointment of four new directors: Paul Johnson, Fernando Lacadena, María Grecna and José María Cantero de Montes-Jovellar. All are reputable professionals in their respective areas of activity. Johnson has worked in the hotel sector for 30 years, where he has created a chain, Kew Green Hotels, which has more than 5,000 beds and was recently sold to HK CTS for GBP 400 million.

Lacadena currently serves as the CEO of Testa – which has now been integrated into the Socimi Merlin – and, for several years before that, was the Finance Director at Sacyr. Meanwhile, Grecna has been the CEO of Värde Partners Europe and, between 2011 and 2013, was the CEO of the company in Iberia, headquartered in Madrid.

Finally, Cantero is a marketing specialist, who used to work at Amena (Orange) and who has worked for Mutua Madrileña for the last eight years, where he has served as the Deputy CEO. Oceanwood currently has one director on NH’s Board, Alfredo Fernandez Agras, and it asks that the General Shareholders’ Meeting ratifies his appointment. It says that there is no need to re-elect him, as it wants to prevent HNA from requesting the revocation of his appointment on the day of the General Shareholders’ Meeting.

Original story: Expansión (by S. Arancibia)

Translation: Carmel Drake