Covivio Hotels, the hospitality arm of French property giant Covivio, has announced plans to launch a capital increase with shareholders' preferential subscription rights of €250 mln, subject to market conditions.
All the main shareholders of Covivio Hotels, including Covivio which holds 43.5% as well as members of the Supervisory Board, for a combined interest of 97%, have already committed to subscribe for shares in the capital increase in proportion to their respective shareholding at a maximum price per share of €16, with the final to be decided by the General Manager of Covivio Hotels according to market conditions.
Covivio has also committed to subscribe for shares to cover the residual 3%.
‘The acceleration of vaccination campaigns in Europe and the first announcements of post-lockdown plans suggest a recovery of activity. Convinced of the strong foundations of the European hotel market, Covivio Hotels is preparing the resumption of the activity with this capital increase,’ the company said in a statement.
By strengthening and optimizing its balance sheet, Covivio Hotels is preparing to seize any investment opportunities that may arise, it added.
‘The hotel industry has consistently shown its tremendous ability to rebound and adapt. The will and need to travel will emerge stronger from this challenging period. Alongside our partners, and with this transaction, we are preparing for the recovery, in order to consolidate our presence in this market,’ said Dominique Ozanne, Chief Executive Officer of Covivio Hotels.
Covivio Hotels owns roughly €6 bn in assets spread over a dozen countries in Europe.
