CP Holdings Ltd. has acquired an additional 1.1 million shares of Budapest-based Danubius Hotels, giving it 98.2% of the stock and control of the 23-hotel portfolio. The UK-based company has also stated its intention to delist Danubius from the Budapest Stock Exchange and operate the venture as a private company.
The Offer price was HUF 8,000 per share (US$28.52), a 47.97% and 49.99% premium above the average Budapest Stock Exchange price weighted by trading volumes during the 180 and 360 days prior to the launch of the offer on June 15, 2015, respectively, and a 9.77% premium above the company’s consolidated book value of shareholders’ equity per share as at December 31, 2014.
“We are glad to be able to confirm the success of the voluntary joint public purchase offer for the Danubius Hotels shares, and we believe that the overwhelming acceptance by institutional and private shareholders also confirms that the offer price was fair and generous,” said Mark Hennebry, Director – Hotels at CP Holdings. “We now believe that the time has come for a new epoch in the Company’s history, to continue its strategy as a private company, with the strong support of our senior management and our valued staff.”
Danubius is the largest hotel chain in Hungary. The company both owns and operates 23 hotels (with over 5,500 rooms), including the Hilton Budapest and Hotel Gellért, together with the Gundel Restaurant in Hungary. In addition it is also the majority owner and operator of eight hotels in Marienbad, Czech Republic, 12 hotels in Slovakia and three hotels in Sovata, Romania.