U Invests ฿890M. to Acquire the Rights to Operate 19 Hotels in Germany and Switzerland
U invests ฿890M. to acquire the rights to operate 19 hotels in Germany and Switzerland
U invests ฿890M. to acquire the rights to operate 19 hotels in Germany and Switzerland
2 พ.ค. 2562

U City Public Company Limited (U) informed  Vienna House Germany II GmbH (VHG II), which is a subsidiary in Germany, had entered into the Agreement to sell and purchase shares in 12 companies in Germany and Switzerland with arcona Management GmbH  (ARCONA) with total purchase price is in the amount of EUR 24.7 million (or approximately Baht 890,489,340). The this agreement has been made on 30 April 2019 and U expects all of the transaction will be completed within 31 May 19.
After all of the transaction has been fully completed, VHG II will acquire the ordinary shares in 12 companies from ARCONA with total purchase price amounted to EUR 24.7 million (or approximately Baht 890,489,340). Thus, VHG II will pay deposit in the amount of EUR 3.5 million (or Baht 126,182,700) to the ARCONA in cash at the date in which all conditions precedent under the Shares Sale and Purchase Agreement is fulfilled or receiving indulgence from the related party (in which all material conditions precedent has been successfully committed on the date of entering into the Share Sale and Purchase Agreement). Hence, the Deposit amount shall be deemed as a part of net purchase price and U will pay remaining of purchase price in the amount of EUR 21.2 million (or Baht 764,306,640) within May 31, 2019. 
Additionally, VHG II will receive rights of operating lease of 17 existing hotels (total number of room is 1,792 room keys) consist of hotels under (1) arcona brand, (2) arcona Living brand and (3) Steigenberger brand, which is located in Germany and Switzerland, and operating lease of 2 new hotels which will be operated in 2020 and 2022 (total number of room is 251 room keys). 