PARIS The initial public offering of Groupe Lucien Barrière, which valued the company at €575 million to €700 million based on an issue price of €16.10 to €19.60 per share, failed to receive the level of investor interest that owner Accor had anticipated. As a result, Accor has withdrawn its offer to sell its 49% stake in the company, saying that the sale is not in its shareholders’ interests.
Relying on its solid first-half results and the progress made on its asset disposal program, Accor says it has the ability to pursue its expansion while retaining its stake in Groupe Lucien Barrière in order to benefit from the expected value creation.
“Under these conditions, and given the quality of Groupe Lucien Barrière’s assets and our confidence in the company’s future, we feel that it is preferable for Accor shareholders to retain our stake,” says Accor Chairman and CEO Gilles Pélisson. “In light of our sound financial structure, this will not have any impact on the pursuit of our objectives.”
Accor confirms its intent to divest Groupe Lucien Barrière at some point in the future, calling it a “non-strategic holding.”