Orbis is one of the largest hotel operators in Central and Eastern Europe and the exclusive master franchisee of certain AccorHotels brands in the region. Its portfolio comprises 128 hotels (21,000 rooms) in 16 countries operated under the Sofitel, Pullman, MGallery, Novotel, Mercure, ibis, ibis Styles and ibis budget brands.
AccorHotels announced the intention to launch a tender offer for the acquisition in cash of the 21,800,593 shares of Orbis it does not already own — representing 47.31% of the share capital (“the Offer”).
“The proposed transaction will enable AccorHotels to accelerate its development”
Sebastien Bazin, chairman and CEO of AccorHotels, said: “AccorHotels and Orbis have built a long-term partnership since their first business agreement 45 years ago. As its largest shareholder since 2000, AccorHotels has fully supported Orbis’ growth in Poland, then across Central Europe since 2014, where Orbis has become today a formidable leader.
“The proposed transaction will enable AccorHotels to accelerate its development in the region. In addition, it will enable AccorHotels to further implement its active asset management policy.”
The offer, at a price of PLN 87.0 zlotys per share, is unconditional. The subscription period will be open from 17 December 2018 to 18 January 2019. The offer price represents:
- 20% premium over the closing price of the day prior to the announcement
- 11% premium over the volume-weighted average price of the last 3 months
- 3% premium over the volume weighted average price of the last 6 months
Assuming AccorHotels acquires 100% of the shares it does not currently own, the overall cash consideration would amount to EUR 442 million (USD 501 mn). Through the transaction, it intends to consolidate its leadership in Central Europe and improve optionality on Orbis’ asset portfolio management.
If upon completion, AccorHotels holds at least 90% of the share capital of Orbis — the group intends to proceed with a squeeze-out of the minority shareholders of the company. AccorHotels has decided to launch the Offer to initiate the delisting of Orbis’ shares from the Warsaw Stock Exchange.