Approval of Capital Contribution

Released : 23/12/16 13:36

RNS Number : 7698S
PPHE Hotel Group Limited
23 December 2016
 

 

 

 

23 December 2016

 

 

PPHE Hotel Group Limited

("PPHE Hotel Group")

Approval of Capital Contribution

 

Further to its announcement on 21 December 2016, PPHE Hotel Group, which together with its subsidiaries (the "Group") owns, leases, develops, operates and franchises full service upscale and lifestyle hotels in major gateway cities, regional centres and select resort destinations, predominantly in Europe, today announces that the Management Board of Arenaturist d.d. ("Arenaturist") approved the issue of 1,091,250 new shares ("New Shares") in Arenaturist, valued at forty seven pounds (£47) per share, using the average traded price of an Arenaturist share on the Zagreb Stock Exchange in the week preceding the decision of the Management Board. The New Shares shall be issued  to a member of the Group, Dvadeset Osam d.o.o., thereby increasing the Group's interest in Arenaturist to 77.08%, in exchange for the transfer of PPHE Hotel Group's German and Hungarian operations, consisting of companies and hotel properties), management rights for such hotels and an exclusive sub-license to use the Park Plaza® brand in the territories of Croatia, Germany, Austria, Bulgaria, Slovenia, Bosnia and Herzegovina, Montenegro, Kosovo, Serbia, Albania, Romania, Moldavia, Ukraine, Slovakia, the Czech Republic, Poland, Belarus and Hungary to Arenaturist (the "Capital Contribution").

Following the Capital Contribution, Arenaturist shall become the majority owner of Sugarhill Investments B.V. ("Sugarhill") (constituting eighty eight percent of the share capital of Sugarhill).  The Group has also granted Arenaturist an option to acquire the remaining twelve percent of Sugarhill at a price per share which is based on the agreed valuation for the Capital Contribution. The option is exercisable during the 18 months period commencing today. 

A portfolio of seven owned (or part owned) and/or leased upscale hotels and one managed upscale hotel comprising 1,295 bedrooms have now been added to Arenaturist's and its subsidiaries' portfolio, as a result of the Capital Contribution. 

The approval of the Management Board of Arenaturist was granted to the Executive Directors of Arenaturist to execute a loan agreement from a member of the Group in the amount of up to EUR 10 million to be applied towards partial payment of the purchase price for the two German hotels, art'otel cologne and art'otel berlin kudamm and to issue a counter-guarantee to PPHE Hotel Group. 

This announcement contains inside information for the purposes of Article 7 of Regulation 59.

 

Enquiries

 

PPHE Hotel Group Limited

 

Chen Moravsky, Deputy Chief Executive Officer
and Chief Financial Officer

 

Tel: +44 (0)20 7034 4800

Hudson Sandler LLP

 

Wendy Baker / Jocelyn Spottiswoode

Tel: +44 (0)20 7796 4133

 

 

Notes to editors

 

PPHE Hotel Group Limited is a Guernsey registered company and through its subsidiaries, jointly controlled entities and associates, owns, leases, operates, franchises and develops full service upscale and lifestyle hotels in major gateway cities, regional centres and select resort destinations, predominantly in Europe.

 

The majority of the Group's hotels operate under two distinct brands, Park Plaza® Hotels & Resorts and art'otel®. The Group has an exclusive licence from Carlson, a global privately held hospitality and travel company, to develop and operate Park Plaza® Hotels & Resorts in Europe, the Middle East and Africa. The art'otel® brand is fully owned by the Group.

 

PPHE Hotel Group has a controlling interest (65.63% of the share capital) in Arenaturist d.d., one of Croatia's leading hospitality companies, which is listed on the Official Market of the Zagreb Stock Exchange.  

 

The portfolio of owned, leased, managed and franchised hotels comprises 38 hotels in operation offering a total of nearly 8,400 rooms. The development pipeline includes four new hotel projects and one hotel extension and reconfiguration. These developments are expected to add over 800 rooms to our portfolio by the end of 2016 and an additional 500 rooms by the end of 2019.

 

Our Company:
www.pphe.com

 

Our Hotel Brands:
www.parkplaza.com
www.artotels.com
www.arenaturist.com

 

For images and logos visit www.vfmii.com/parkplaza

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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