PPHE Hotel Group is buying an 80% interest in its Croatian joint venture company which owns seven hotels and six apartment complexes as well as interests in eight campsites in Istria, Croatia.
PPHE Hotel Group is buying an 80% interest in its Croatian joint venture company which owns seven hotels and six apartment complexes as well as interests in eight campsites in Istria, Croatia.
The €51 mln investment in the JV also involves the firm's indirect ownership of a 74.15% stake in the Croatian listed hotel operator Arenaturist. The acquisition is being financed partly from the group's cash reserves and partly via a €30 mln loan from Zagrebaèka bank.
The vendor is PPHE's partner in the business, Goldman Sachs.
As a result of the transaction, PPHE will be required to make a mandatory takeover offer for the outstanding share capital of Arenaturist. Following the offer, PPHE also said it has agreed to sell 9% and 1% of the Arenaturist share capital to two institutional investors, respectively insurers Allianz ZB and PBZ Croatia Osiguranje.
'The acquisition of further shares in Arenaturist provides the group with the opportunity to accelerate the growth of the Park Plaza brand in Central and Eastern Europe. This is an exciting development for both the group and Arenaturist,' said Boris Ivesha, PPHE's president & Chief Executive Officer.
Completion of the deal is expected to take place on 13 April 2016.
