The Spanish stock market regulator, CNMV, has suspended trading of shares in NH Hotel Group SA, just as its Thailand-based parent company, Minor International, announced an offer to buy NH stocks in the market. The suspension was enacted as a “precautionary measure” taken “while relevant information on the aforementioned entity is disseminated,” according to Reuters.
Minor International, which already owns a controlling 94% stake in NH, revealed in a separate statement following the CNMV’s announcement that it plans to buy outstanding shares on the Madrid stock exchange for a 30-day period at a price not exceeding 4.50 euros per share. The move comes amid heightened competition in the hospitality industry as well as the ongoing impact of the COVID-19 pandemic on travel and tourism.
NH Hotel Group SA is a Spanish-based hotel chain with a presence in over 30 countries. The company has struggled in recent years due to increased competition from home-sharing platforms like Airbnb, as well as the impact of the COVID-19 pandemic on the travel industry.
NH had published its first-quarter results earlier on Monday, showing signs of improvement despite the pandemic. The group’s net recurring loss had halved from a year ago, and the company expected demand to remain strong in the coming months. However, NH did not mention Minor International’s offer in its report.
The offer from Minor International has been viewed by some as an attempt to further consolidate its position in the European market. While the move may signal confidence in NH’s long-term prospects, it remains to be seen whether other potential buyers will enter the fray in a bid to acquire a stake in the hotel chain.
As of now, there is no official statement from NH Hotel Group SA on the offer from Minor International. However, the market will be closely monitoring the situation as it unfolds, with many analysts predicting that the parent company’s bid could trigger a bidding war for NH shares. The outcome of this situation could have significant implications for both NH and the broader hospitality industry.
