Jin Jiang acquired HNA’s share of Radisson Hotels earlier this year and became part owner also of Sweden based Radisson Hospitality (previously known as Carlson Rezidor).
The Chinese company currently owns more than 50% of Radisson Hospitality and is required by the Swedish takeover act to lower their ownership to 30% or make a public tender for rest. The company decided to make an offer for the shares that they don’t own yet.
Here’s the statement from Radisson:
The Independent Committee of the Board of Directors of Radisson evaluates the mandatory public offer from a consortium led by Jin Jiang International Holdings Co., Ltd., including SINO-CEE Fund, through Aplite Holdings AB
This statement is made by the independent committee1 of the Board of Directors (the “Independent Committee”) of Radisson Hospitality AB (publ) (the “Company” or “Radisson”).
The Independent Committee notes that a consortium led by Jin Jiang International Holdings Co., Ltd., including SINO-CEE Fund, through the joint acquisition vehicle Aplite Holdings AB (the “Consortium”), today on 11 December 2018 announced a mandatory public offer to the shareholders of Radisson to sell all of their shares in Radisson to the Consortium for a consideration of SEK 40 in cash per share (before dividends) (the “Offer”).
The acceptance period of the Offer is expected to commence on 7 January 2019 and to expire on 1 February 2019, subject to any extensions. The Independent Committee will, in accordance with Nasdaq Stockholm’s Takeover Rules, evaluate the Offer and announce its view on the Offer no later than two weeks before the end of the acceptance period, that is not later than 18 January 2019 under the preliminary timetable.
The Independent Committee has engaged Benedetto, Gartland & Company as financial advisor and Gernandt & Danielsson Advokatbyrå as legal advisor in relation to the Offer. Rothschild has been engaged to provide a so called fairness opinion.
Jin Jiang is owned by the Shanghai government. Not sure what is their core competence to be in the hospitality business beyond being able to loan money at cheap rates? Cannot see this ending up well in the long term for anyone involved.
Not sure how this will affect Radisson Hotels? Are they going to be mainly used for Chinese tourists on package tours in the future?
Previously, the Radisson Hospitality’s board had voted down the offer from HNA to purchase rest of the company it didn’t own. Interesting to see what they will suggest shareholders to do this time.