Radisson Hospitality AB shareholders told not to accept Jin Jiang offer
Shareholders of Radisson Hospitality AB were advised not to accept a mandatory public offer for their shares on Wednesday, as the company’s independent committee released a statement to markets.
The Sweden-based group had received the mandatory public offer from a consortium led by Jin Jiang International Holdings in December, after that firm acquired 50.21% of Radisson’s shares from Radisson Hospitality, Inc in November.
Shareholders were offered consideration of SEK 40 in cash per share by the Jin Jiang consortium.
Radisson Hospitality AB also noted that in the consortium's press release announcing the offer, it stated that it had entered into an agreement with HNA Sweden Hospitality Management AB - an indirectly wholly-owned subsidiary of the former majority owner HNA Tourism Group - to acquire up to an additional 18.16% of the shares and votes in the company.
The acceptance period of the offer was expected to commence on or around 7 January, and to expire by 1 February, subject to any extensions, with no conditions currently set for the completion of the offer.
“The independent committee has evaluated the offer in accordance with the provisions of the takeover rules,” Radisson Hospitality AB said in its statement.
“The independent committee recommends the company's shareholders not to accept the offer.”
It said its opinion of the offer was based on an overall assessment of a number of factors that it had considered relevant to the evaluation of the offer, including the company's present strategic and financial position, its expected potential future development, and related opportunities and risks.
“Although recommending the shareholders not to accept the offer, the independent committee notes that, as a result of the offer, the liquidity of the Radisson share may be further reduced and that the ownership structure may become more concentrated which could be negative for the company's other shareholders.”