Mubadala Capital has signed an agreement with French tourism and hospitality operator Pierre et Vacances to acquire its outstanding shares, as the Abu Dhabi company looks to further diversify its portfolio.
The asset management subsidiary of Abu Dhabi’s sovereign investor Mubadala Investment Company has launched its acquisition bid for the French company with an all-cash voluntary tender offer, Mubadala Capital said in a statement on Monday.
The ADGM-headquartered investor has secured commitments for its offer from existing shareholders who represent 80.13 per cent of Pierre et Vacances’ outstanding share capital.
The tender offer through MC Pomona Bidco2, the special purpose vehicle controlled by Mubadala Capital, is subject to regulatory approvals and the approval of its employees and shareholders.
Mubadala expects to file the tender offer in the first quarter of next year.
“The signing of this agreement, supported by the commitments of our main shareholders, marks a decisive step in our strategic review,” Georges Sampeur, chairman of the Pierre et Vacances board, said.
The Pierre & Vacances-Center Parcs Group is among Europe’s leading leisure and hospitality companies. It operates more than 45,000 apartments, houses and villas across 330 destinations through its four brands.
Key terms
Key terms of Mubadala Capital’s tender offer agreement include €1.90 ($2.17) per Pierre et Vacances ordinary share with dividend distribution, and €1.79 per ordinary share post-dividend distribution.
The offer includes a “top-up” of €0.10 per ordinary share if Mubadala Capital can implement a “squeeze-out of all outstanding securities and delist the company immediately following the offer”.
The Abu Dhabi investor said the company intended to support the French group’s next phase of growth through continued investment in the customer offering, the renovation of its portfolio and its expansion across Europe.
“We’re investing to help the group grow from a position of strength, expanding capacity, upgrading sites, and backing the teams who run them day to day,” Antoun Ghanem, partner and head of European private equity at Mubadala Capital, said.
Set up in 2011, Mubadala Capital is a global alternative asset management platform that manages, advises and administers more than $600 billion in assets for clients.
Its investments include the acquisitions of CI Financial corporation and Clear Channel Outdoor Holdings as well as the European leisure and hospitality sector operator Looping Group.
“Our investment in Looping Group gave us a close look at this sector and were looking forward to bringing that experience to [the Pierre et Vacances] partnership,” Mr Ghanem said.
