Hyatt Hotels Corp backs out of bid to buy NH Hotel Group
Hyatt Hotels Corp says it has now decided not to proceed with a competing bid to acquire Spain’s NH Hotel Group.
Just a week ago the Chicago hotel group announced its interest in buying NH Hotel Group.
Hyatt says disclosures from NH Hotel Group’s largest shareholder, which is also vying to acquire the business, make it ‘impractical’ to move forward with a bid.
"On July 26, 2018, Hyatt delivered a letter to the board of directors of NH Hotel Group in which we expressed our interest in pursuing a potential acquisition of NH Hotel Group with a separation of its real estate assets from its hotel management platform. Thereafter, Hyatt submitted a letter to the NH Hotel Group’s board of directors," said Hyatt CEO Mark Hoplamazian.
"After reviewing the disclosures that were made by NH Hotel Group’s largest shareholder shortly after the submission of our letter of interest, we believe that the path to a successful tender offer by Hyatt has now narrowed to a point of being impractical. Pursuing a tender offer is not viable at this time."
That leaves Thai based Minor International out on its own and aiming to complete a deal for full control.
Minor says it has an undertaking for a 44% shareholding in the Spanish hotelier.
While an acquisition looks dead in the water, Hyatt has not ruled out a relationship if the group restructures its assets more favorably.
"We have communicated to NH Hotel Group’s board that we remain willing to engage in a dialogue with them to discuss other potential avenues toward unlocking value for NH Hotel Group’s shareholders. We believe that a higher value could be realized by NH Hotel Group’s shareholders if there were an agreed commitment and path to restructure NH Hotel Group’s assets," Hoplamazian added.
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