Register to get 3 free articles
Register to unlock the article and receive our free newsletter. Join 26,000 other hotel leaders and stay in the know.
Want unlimited access? View Plans
Already have an account? Sign in
The NH Hotel Group has rejected the proposed merger from the Barceló Group saying it undervalues the business.
In a statement the company said the terms of the bid “fail to reflect NH’s true value”.
Barceló Hotel Group made a preliminary merger proposal to fellow Spanish company NH Hotel Group in November 2017, which would have created the biggest Spanish hotel group.
In order to assist the internal review process, the board at NH Hotel Group enlisted the services of Bank of America Merrill Lynch to provide a financial analysis. This has supported the board’s decision to unanimously decline the proposed transaction.
In a statement, NH said: “The exchange ratio does not reflect the two companies relative valuations, even less so adjusting the scope of the transaction to Grupo Barceló’s significant hotelier business.
“Crucially, it does not offer a control premium on NH’s market value, nor does it factor in NH’s potential for revaluation as a standalone business, which is certainly higher than the relative value of €7.08 per share suggested by the offer.
“The offer presented by Grupo Barceló fails to reflect NH’s earnings growth potential or the value of the assets it owns in cities across Europe; as evidenced by the recent sale of the Barbizon Hotel in Amsterdam.”
The board of NH Hotel group also said they took a negative view of the fact that Grupo Barceló’s bid failed to offer a cash alternative or similar liquidity event for NH’s shareholders.
