Expect to see more Plaza Hotels around Istria in the near future as PPHE Hotel Group has ambitious plans for Arenaturist.
PPHE Hotel Group Limited, which together with its subsidiaries (PPHE Hotel Group) owns, leases, develops, operates and franchises full service upscale and lifestyle hotels in major gateway cities and regional centres, predominantly in Europe, announced on March 29 that it has published the formal documentation relating to the takeover offer for Arenaturist d.d, a hotel company in Croatia.
On 1 March 2016, PPHE Hotel Group announced that its wholly owned subsidiary Euro Sea Hotels N.V. had entered into an agreement to acquire the remaining 80% interest, which it does not currently own, in its joint venture inCroatia. The joint venture indirectly owns 74.15% of the issued share capital of Arenaturist d.d (Arenaturist), a Croatian public company whose shares are traded on the Zagreb Stock Exchange. As a result of the Acquisition, PPHE Hotel Group is required to make a mandatory takeover offer for the outstanding share capital of Arenaturist.
In connection with the Acquisition, the approval of the Arenaturist shareholders is being sought for the election of four new members nominated by PPHE Hotel Group to the Management Board of Arenaturist. A General Assembly of Arenaturist has been convened on 13 April 2016 to consider such elections. The Acquisition is expected to complete shortly after the General Assembly.
As required by Croatian law and regulation, the Offer was also published on the Zagreb Stock Exchange on March 29, 2016. The Offer will remain open for 28 days from March 30, 2016 (being the date of its publication in the Croatian National Gazette). The documentation relating to the Offer contains a statement relating to PPHE Hotel Group's future intentions for Arenaturist.
The offer price has been confirmed atHRK325.73per Arenaturist share. The offer price values the issued share capital of Arenaturist at€94.4m(approximately) and the outstanding shares to which the offer relates (25.85%) at€24.4m(approximately).
Future intentions of PPHE Hotel Group in relation to Arenaturist
After the acquisition of remaining shares, PPHE Hotel Group has clearly stated its future intentions for Arenaturist, one of the largest hotel companies in Croatia.According to the press release from PPHE Hotel Group, the company intends to continue to operate Arenaturist as an independent business with its own management.
Following completion of the Takeover Bid and the change of directors at the General Assembly on 13 April 2016, PPHE Hotel Group intends to put forward proposals to join, through acquisition or merger, its Croatian assets and operations which currently do not directly form part of Arenaturist (Arenaturist Hoteli d.o..o, Arenaturist Zlatne stijene d.o.o. and Arenaturist Turistička naselja d.o.o.) along with the hotels and hotel operations owned by the Bidder independently or with partners which may include some of the following hotels: Park Plaza Wallstreet Berlin Mitte, Park Plaza Berlin Kudamm, art'otel Berlin Mitte, art'otel Berlin Kudamm, art'otel Cologne (Köln) and Park Plaza Nuremberg (under construction), all located inGermanyand art'otel Budapest located in Hungary, into Arenaturist.
As part of the process referred to above and to further the expansion of Arenaturist both inside and outside ofCroatia, Arenaturist will be vested with a licence to use the Park Plaza brand in Croatia,Germany,Austria, and various other countries of Central andSouth-Eastern Europe. Following which, it is PPHE Hotel Group's expectation that Arenaturist will be strongly positioned to be able to acquire and develop new hotels or to attain new management contracts for hotels owned by third parties within Central andSouth Eastern Europe.
Following completion of the process referred to above, PPHE Hotel Group is proposing to transfer the listing category of all of Arenaturist's shares from the Regular Market to the Official Market of the Zagreb Stock Exchange. It is anticipated that such transfer will provide exposure to a wider investor base, enhance the liquidity of Arenaturist's shares, heighten Arenaturist's profile and provide greater flexibility to grow Arenaturist's business.
PPHE Hotel Group's ambition is that Arenaturist develops into a substantial Central and Eastern European leisure and hospitality company with a business model that would entail owning and managing its own assets and those of others under the Park Plaza brand."
