NH Hoteles Cuts Price of 20 Pct Stake

October 18, 2011

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HNA Group, parent of China's Hainan Airlines, has changed the conditions of its purchase of a stake in Spain's NH Hoteles, cutting the share price of a capital increase to 5.35 euros per share from an original 7 euros per share, the Spanish hotel group said.

The deal, which went through in May, is for the Chinese group to subscribe to a capital increase that would give it 20 percent of NH Hoteles.

Due to the drop in NH Hoteles share price in recent months, the investment in the Spanish group will be around EUR€329.9 million (USD$457.1 million) instead of the previously announced injection of EUR€431.6 million, NH said.

(Reuters)