On 12 May 2017, Arena announced that it was seeking to raise between HRK 600m and HRK 750m (after expenses) by issuing up to 2 million new ordinary registered shares (“New Shares”) within a price range of HRK 400 to HRK 500 per share. Following the public offering of its shares to Croatian and international investors, Arena will issue 1,854,971 New Shares at a price of HRK425 per New Share which will result in the Company receiving proceeds of HRK788,362,675 before expenses.
Trading in the New Shares on the Zagreb Stock Exchange is expected to commence on or around 6 June 2017.
PPHE Hotel Group Limited (“PPHE Hotel Group”), via its wholly owned subsidiary, will be issued 141,883 New Shares. Following the issue of the New Shares, PPHE Hotel Group will indirectly hold 51.97% of the Arena’s share capital.
Arena’s public offering of shares is the first international public offering by a Croatian tourism company and the largest fundraising by a Croatian company since 2007.
The proceeds from the public offering of shares are expected to be used for:
1. acceleration of the implementation of Arena Group’s capital investment plan aimed at upgrading a number of its properties in Croatia and funding the Arena Group expansion in the CEE Region;
2. exercising an option to acquire the remaining 12% of the interest in Sugarhill Investments B.V. (including associated transaction costs) from the PPHE Hotel Group, following which Arena will indirectly own the entirety of its operations in Germany and Hungary; and
3. repayment and refinancing Arena’s debt where appropriate in order to achieve more favourable financing terms.
Boris Ivesha, Chairman of Arena's Board of Directors, said:
"We are pleased to have reached yet another important milestone in the transformation of Arena into an international hospitality company with a well-balanced portfolio. Following a successful road show during which our team visited existing and potential investors in cities such as Zagreb, Ljubljana, London, Stockholm, Tallinn and Vienna, our shareholder base has been expanded. We are pleased that approximately 20 per cent of the New Shares were subscribed by international investors. The new capital raised will enable us to accelerate our investment plan aimed at upgrading existing properties and realise further growth for Arena in Central and Eastern Europe. We would like to thank our existing shareholders for their confidence in our offering and we welcome our new investors who will become part of our growth story.’’
Contact:
Svebor Gretić
Senior Consultant
Madison Consulting
099 2083 009
svebor.gretic@madison.hr
About Arena Hospitality Group
Arena Hospitality Group d.d., headquartered in Pula (“Arena”), is a hospitality company which operates in Croatia, Germany and Hungary. Arena's portfolio currently consists of 27 owned, co-owned, leased and managed properties with more than 10,000 rooms and accommodation units in cities such as Berlin, Cologne, Nuremberg, Budapest and tourist destinations in Istria. Arena has an exclusive right to operate and develop hotels under the international Park Plaza® brand in 18 Central and Eastern European countries. PPHE Hotel Group, which is one of central London’s largest owner/operators of internationally branded hotel rooms in the upper upscale segment of the market, is the largest shareholder of Arena and currently indirectly owns 77.09% of share capital.
Website: arenahospitalitygroup.com
The material set forth herein is for informational purposes only and does not constitute an offer of securities for sale or a solicitation of any offer to buy securities in the United States, Australia, Canada, Japan, South Africa or in any EU member state or any other country where the offer of the securities to the public is not taking place or any other jurisdiction in which such an offer or solicitation is unlawful. The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act"), or the laws of any state, and may not be offered or sold within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state laws. No public offering of securities will be made in the United States. Subject to certain exceptions, the securities referred to herein may not be offered or sold in Australia, Canada, Japan or South Africa or in any EU member state or any other country where the offer of the securities to the public is not taking place, or for the account or benefit of, any national, resident or citizen of Australia, Canada, Japan or South Africa or any EU member state or of any other country where the offer of the securities to the public is not taking place. Copies of this material are not being, and should not be, distributed or sent into the United States, Australia, Canada, Japan or South Africa or any EU member state or any other country where the offer of the securities to the public is not taking place. No action has been taken to permit the offering of the offer share to occur outside of the Republic of Croatia.
Source of information:
Arena Hospitality Group d.d.
Smareglina ulica 3, 52100 Pula
Informations to shareholders:
tel.: 052 / 223 811
fax: 052 / 211 759
e-mail: dionice@arenaturist.hr
web: www.arenaturist.com
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