Three PPHE Hotel Group Shareholders To Sell 22% Total Stake (ALLISS)

LONDON (Alliance News) - PPHE Hotel Group Ltd on Tuesday said three major shareholders are ...

Alliance News 26 March, 2019 | 9:41AM
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LONDON (Alliance News) - PPHE Hotel Group Ltd on Tuesday said three major shareholders are intending to sell up to a combined 22% stake in the company via a placing.

Shares in the hospitality real estate group were down 7.1% at 1,653.20 pence on Tuesday morning.

Euro Plaza Holdings BV, Walford Investments Holdings Ltd, and Aroundtown Real Estate Ltd plan to sell an aggregate of up to 9.3 million existing shares in PPHE at a price of no less than 1,600p per share.

Based on these figures, the three investors stand to gross around GBP149 million from the sale in total.

The shares represent 22% of PPHE's shares in issue, with the placing to institutional investors intended to "satisfy market demand" and broaden PPHE's institutional investor base, the company said.

Moreover, the sale of all placing shares would achieve the necessary free float for PPHE to qualify for inclusion in the FTSE UK series of indices. The company's current market capitalisation is GBP753.6 million.

Euro Placa is a subsidiary of APY Investments & Real Estate Ltd, and 98% of APY's shares are held by PPHE Chair Eli Papouchado. Walford is wholly owned by Clermont Corporate Services Ltd, as trustee of assets established for the benefit of PPHE Chief Executive Boris Ivesha and his family.

PPHE itself, however, is not party to the placing and will receive no proceeds.

The three sellers have entered a block trade agreement with five companies, including finnCap Ltd and Numis Securities Ltd, to act as joint bookrunners and placing agents for an accelerated bookbuild.

By Anna Farley; annafarley@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar Rating
PPHE Hotel Group Ltd 1,862.30 GBX -1.98 -
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