Skift Take

NH Hotel Group's minority shareholders don't want to sell to Minor International. If Minor ups the offer, then the board revolt may be put down.

Spain’s NH Hotel Group said its three independent board members quit in opposition to an offer made by the company’s main shareholder Minor International to buy the shares it does not already own.

Thai tourism group Minor International, which already owns a 94% of NH Hotel’s shares, had made an offer for the remaining outstanding shares at 4.50 euros ($4.95) apiece, which was later raised to ‘market price’ after the market regulator said the offer was too low and recommended a price above 5.68 euros.

In a letter sent to the regulator, the independent board members, Alfredo Fernandez, the board’s chairman, Jose Maria Cantero de Montes-Jovellar and Fernando Lacadena, said the offer was “detrimental” to minority shareholders.

The remaining board members opposed the statement and called for a board meeting.

During the pandemic, NH Hotel lost about 50% of its market value. Despite an industry recovery since late last year and a strong price increase this year, its shares still trade well below the 6.30 euros that Minor paid for its stake in 2018.

Shares were up just 0.1% at 4.32 euros in morning trading, and are up 45% so far this year.

($1 = 0.9084 euros)

(Reporting by Joanna Jonczyk-Gwizdala, Editing by Inti Landauro and Bernadette Baum)

This article was from Reuters and was legally licensed through the Industry Dive Content Marketplace. Please direct all licensing questions to [email protected].

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Tags: corporate governance, minor international, nh hotels, spain

Photo credit: Pictured is NH Hotels Cordoba in Spain. Source: Flickr/Luis Ferrer LluĂ­s Ferrer / Flickr

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