* NH Hoteles and Hesperia have signed an agreement for the integration of their respective hotel management businesses. This transaction will generate significant synergies both at income and expenditure level, endowing NH Hoteles with greater competitiveness. * NH Hoteles will manage 51 hotels that are currently owned or operated by Hesperia; thereby NH Hoteles will increase the total number of operating hotels to 400. * At the same time, Hesperia will join the Board of NH Hoteles.
NH Hoteles and Hesperia have signed an agreement aiming to integrate their respective hotel management businesses. This deal, supported by both of the Boards, implies the creation of the largest Spanish hotel group within the urban segment.
The agreement aims to consolidate the hotel management business of both groups maximizing synergies through unified management of all hotels and taking advantage of complementary strategies. At the same time, Hesperia will join the Board of NH Hoteles, providing added value to NH Hoteles and hence to its shareholders.
In addition, the Board of NH Hoteles will propose to the Shareholders Meeting both to extend the limitation of voting rights of shareholders to 20% and to reduce to 51% the quorum to modify or remove this limitation, for which an extraordinary shareholder meeting will be convened once the integration is formalized.
Main advantages of the deal:
* NH Hoteles reinforces its strategy to lead the European market in the urban segment and extends its domestic and international presence without recurring to either capital or debt increases, taking into account that the agreement only assumes the management of all Hesperia hotels and not the purchase of their owned or leased hotels.
* Hesperia, with more than 25% stake in NH Hoteles after the last capital increase of July 2009, will join the Board of NH Hoteles and other committees of NH Hoteles.
GBS Finanzas is acting as financial advisor for both parties.
