Accor purchased 5% of Singapore based Banyan Tree hotel chain back in 2016 (read more here) with an option to up the stake to 10%.
Banyan Tree issued a press release yesterday that Accor had decided not to exercise that option.
Here’s an excerpt from the Business Times (access their piece here):
The option was granted in late April alongside an irredeemable convertible debt of S$24 million subscribed by Accor, and a collaboration agreement to co-develop hotels. The placement shares offered under the option agreement were to be sold at a 15 per cent premium to the volume-weighted average price immediately before the option notice is submitted by Accor.
Not sure if the transaction would not have been beneficial for Accor or if the partnership with Banyan hasn’t gone as well as originally planned? Accor has been acquiring hotel chains and brands like there is now tomorrow over the past few years.