The combination of HNA Tourism Group and Carlson Hotels to have robust presence in international hospitality, with increased ability to accelerate growth, expand key brands, and strengthen its best-in-class hospitality experience for its guests. Carlson Hotels headquarters to remain in Minnetonka, Minn.
HNA Tourism Group Co., Ltd. (“HNA Tourism Group”), a division of HNA Group Co., Ltd., a Fortune Global 500 company with operations across aviation, tourism, hospitality, finance, and online services among other sectors, and Carlson Hospitality Group, Inc. announced that they have entered an agreement (“Agreement”), for the acquisition of Carlson Hotels, Inc.(“Carlson Hotels”), which owns the Quorvus Collection, Radisson Blu®, Radisson®, Radisson RED, Park Plaza®, Park Inn® by Radisson, Country Inns & Suites By CarlsonSM brands and the Club CarlsonSM global hotel rewards program.
The combination of HNA Tourism Group and Carlson Hotels will have increased ability to accelerate growth through investments in areas such as digital, owned assets in major gateway cities, building of Radisson RED and other new brands.
“Carlson Hotels own a powerful set of global brands and this historic agreement provides tremendous opportunities for growth,” said David P. Berg, Carlson Hospitality Group chief executive officer. “We look forward to working within HNA Tourism Group, a greatly respected global enterprise, in what will be an exciting new chapter in the history of Carlson Hotels. As part of HNA Tourism Group, Carlson Hotels will have an opportunity to advance our commitment to providing guests with hospitality world-wide,” added Mr. Berg.
Under terms of the Agreement, which were unanimously approved by the Carlson Board of Directors, HNA Tourism Group will acquire all of Carlson Hotels, including its approximately 51.3 percent majority stake in Rezidor Hotel Group AB (publ) (“Rezidor”), Carlson Hotel’s master license based in Brussels, with hotels in Europe, the Middle East and Africa. Since the closing of the Transaction will result in an indirect change of control in Rezidor, HNA Tourism Group would, under Swedish takeover rules, be obliged to launch a mandatory public tender offer for the remaining approximately 48.7 percent of Rezidor, within four weeks after the closing of the Transaction if the ownership in Rezidor is not sold down below 30 percent. Hence, HNA Tourism Group may, during these four weeks following closing of the Transaction, decide whether to launch a mandatory public tender offer for the remaining shares in Rezidor or sell down its ownership in Rezidor below 30 percent. If HNA Tourism Group decides to launch a mandatory public tender offer, according to Swedish takeover rules and as per a ruling from the Swedish Securities Council (“SSC”)1, the minimum price in such mandatory tender offer would be the 20-trading day volume weighted average price (VWAP) immediately before the announcement of the signing of the Agreement to acquire Carlson Hotels dated April 27, 2016. HNA Tourism Group will give further information about such potential mandatory tender offer in due course, upon closing of the Transaction.