The CAC 40 is a selection of the largest companies listed on the Paris stock exchange, whose performance gives a good indication of the state and direction of the market.
A member of the CAC 40 since the index was created in 1987, Accor left the index in 2020 when the group was faced with the Covid-19 pandemic. The decision by the Scientific Advisory Board of the Euronext Paris indices to reinstate Accor is symbolic of the company's rebound, which has returned to, and even exceeded, its historic performance levels.
In 2023, for the first time in its history, the Accor Group posted EBITDA of over €1 billion on sales of over €5 billion.
Sébastien Bazin, Group Chairman and CEO Accor, said: "We are proud of Accor's re-inclusion in the CAC 40, marking an important milestone in our journey and a testament to the hard work and commitment of our team. It reflects the Group sustained growth and market leadership in the dynamic landscape of the global hospitality sector. I also want to share this good news with Paul Dubrule, co-founder of the Group and a thought for Gérard Pélisson, his dear business partner. After a record year in 2023, the Group has had a solid start to 2024, driven by higher occupancy and demand, and we look forward to the coming years with optimism."
Accor was not entirely absent from the CAC 40, as it was and still is a member of its ESG index, which distinguishes companies for the exemplarity of their environmental, societal and governance practices.
Accor announces the purchase of 2.77% of its shares held by Jinjiang International
Following this announcement, Accor is continuing its momentum by announcing a major initiative in the financial field. The group has signed an agreement to buy 2.77% of its shares from Jinjiang International. The agreed price per Accor share in this transaction is €39.22, at a 3.0% discount to the closing price of €40.43 on 11 March 2024.
This initiative is part of Accor's share buyback programme for 2024, with a total value of €400 million. The transaction, valued at €275 million, will contribute to the consolidation of Accor's shareholder base while being accretive to all shareholders.
Following completion of the transaction and the cancellation of the repurchased shares, Jinjiang International's shareholding in Accor will be reduced from 7.96% to 5.33%. Jinjiang International has also agreed to a 7-month orderly disposal clause in the event of a market sale. Accor's Board of Directors has unanimously approved this transaction, underlining its positive impact on the Group's financial flexibility to support its future development and return to shareholders. In addition, this initiative is expected to be accretive to Accor's earnings per share by approximately 1.5% on an annualized basis.
The firm Ledouble, appointed by Accor's Board of Directors as independent expert, concluded that the price agreed for the purchase of Accor shares was fair for the company and its shareholders, and that the transaction was in Accor's interests without affecting its financial equilibrium. The share buyback, which will be carried out off-market, does not require any conditions precedent and is expected to be completed in the coming days, thereby strengthening Accor's position in the global hospitality market.
“The transaction demonstrates both our strong confidence in Accor’ growth potential and our commitment to returning cash to our shareholders. It also is a mark of the friendly and trusted relationships between Accor and Jinjiang International, which we thank for their continuous support.” - Mr Sébastien Bazin, Chairman of the Board of Directors and CEO of Accor
“We have been enjoying over the past years a trustful and respectful relationship with Accor and we are very pleased to have carried out this transaction. We continue to have strong confidence in the prospects of Accor." - Mr. Qi Zhao, Chairman of Jinjiang International
