PPHE Hotels buys remainder of Arenaturist joint venture

Accommodation investor and developer PPHE Hotel Group confirmed it had completed the acquisition of its Arenaturist joint venture in Croatia.

On 1 March, the AIM-traded firm announced it had entered into a conditional contract to acquire the outstanding 80% interest in its Croatian joint venture which it did not already own, for an aggregate cash consideration of €51m.

At the same time it agreed to a €30m loan facility with Zagrebačka banka to partially fund the acquisition.

“The contract to acquire the 80% interest in the joint venture has now completed, and the associated loan from Zagrebačka banka has been drawn down,” PPHE’s board said in a statement.

It now owns 74.15% of the issued share capital of Arenaturist - a Croatian publicly traded company - and 100% ownership of the three private companies that make up the Arenaturist Group.

The companies together own seven hotels and six holiday apartment complexes, and have an ownership interest in eight campsites in Istria, Croatia.

As a result of the acquisition, PPHE’s wholly-owned subsidiary Euro Sea Hotels announced on 29 March that it was making an unconditional takeover offer for the remaining 25.85% of the issued share capital of Arenaturist.

That offer will close on 27 April, with further information regarding the outcome of the offer following.