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Jin Jiang acquires 50.21% of Radisson AB

Jin Jiang International Holdings Co, Ltd, including SINO-CEE Fund, announced that the consortium has entered into agreements with Radisson Hospitality Inc. and HNA Sweden Hospitality Management AB, a subsidiary of HNA Tourism Group Co, Ltd, to acquire shares in Radisson Hospitality AB. The purchase price under these agreements is SEK 35.00 (€3.42) per share.

In August 2018, Jin Jiang agreed to purchase 100% of Radisson Holdings and 51.5% of the outstanding shares of Radisson Hospitality AB.

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Completion of the acquisition was subject to regulatory approvals and other customary closing conditions. These conditions are now met.

As a result, Aplite Holdings AB (Purchaser) completed the acquisition of 87,552,187 shares of Radisson AB of Radisson Hospitality Inc. representing 50.21% of the shares of Radisson AB.

 

In accordance with Chapter 3, Section 1 of the Swedish Takeover Act, the purchaser is now required:

  • to launch a mandatory public offer for the remaining shares of Radisson AB,
  • to sell its interest in Radisson AB below 30% within four weeks of the acquisition,
  • to sell by December 11, 2018 at the latest.

Radisson Hotel Group's mission is to grow organically through the leverage effect of its brands, the efficiency of its costs and the presence of its new owner in the European landscape.

The Board of Directors has appointed an independent committee from among its members, composed of all members of the Board of Directors (except those related to HNA Tourism Group Co) to deal with the issues of the above transaction and a possible mandatory public offer.

The independent committee is therefore composed of the following members: Andreas Schmid (Chairman), Lo Kin Ching, Wolfgang M. Neumann, Thomas Staehelin, Göran Larsson and Ulf Petersson.

Development in the EMEA region is focused on eight markets: Germany, Italy, Poland, Russia, Saudi Arabia, South Africa, the United Arab Emirates and the United Kingdom.

Also read: How will Radisson Hotel Group develop over the next 5 years?

Elie Younes, Executive Vice President & Chief Development Officer, said that the restructuring of a large part of Radisson's portfolio was done for three reasons:

  • to adapt to be more resistant to cycles,
  • to be intelligently diversified between the right to assets and lightweight assets in mature and emerging markets,
  • to have a focused and committed approach to key primary and mature markets

Radisson has spent 300 million euros ($339.9 million) on capital expenditures, more than 140 million euros ($158.6 million) on marketing and 45 million euros ($50.9 million) on IT in recent years.

"We are ready to invest our own money in this project," he said. "This industry has two customers, guests and owners, and if you don't understand that, you'll never succeed."

Radisson Hotel Group's third quarter results showed an 8.9% increase in RevPAR on a comparable basis, driven by strong performance in the Nordic countries, the implementation of revenue management strategies and the reduction of less profitable assets.

"[Radisson] had the best third quarter (earnings before interest, taxes, depreciation and amortization) in its history, up 15.9% thanks to strong revenue growth at constant scope and exchange rates and good cost discipline," he said.

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