Hyatt drops bid to take over NH

MADRID: Hyatt Hotels Corp has backed away from launching a takeover of NH Hotel Group, days after a rival bidder Minor International revealed it controlled 44% of the Spanish group.

In a letter from Hyatt released to the Spanish stock exchange by NH, the US hospitality company, which on Friday said it might launch a cash bid for 100% of NH, said it saw pursuing an offer as extremely challenging.

“Based on the information we now have, we believe that the path to a successful tender offer by Hyatt under the terms expressed in our letter has narrowed to a point of being impractical,” president and CEO Mark Hoplamazian said in the letter released yesterday.

Thailand-based Minor International made an offer in June which valued NH at up to €2.5 billion ($2.9 billion).

Minor already owns 29.8% with agreements in place to buy Chinese conglomerate HNA Group Co Ltd’s 8.4% holding and Oceanwood Capital Management’s 5.7% stakes. It said late on Friday that it had control over 44% of NH’s share capital.

NH, with over 370 hotels in 30 countries, in January turned down a takeover offer from Spanish peer Barcelo Group which valued the company at €2.48 billion.

Minor had agreed to pay HNA €622 million for a 26.5% stake in the hotel group, taking its stake to around 38% after the conversion of some bonds to shares. It would then offer €6.4 for each remaining share.

NH said Minor’s offer, approved by Spanish and Portuguese competition watchdogs, undervalued the company.

Spain, by far NH’s biggest market with around a third of its hotels, became the second most visited country in the world after France in 2017.