Accor to Sell Majority Stake in AccorInvest for EUR4.4 Billion -- Update

   By Euan Conley 
 

Accor SA (AC.FR) said Tuesday that it will sell a majority stake in its real-estate division AccorInvest to a group of international investors for 4.4 billion euros ($5.4 billion).

The French hotel company said it will initially sell 55% of AccorInvest to a group that includes Saudi and Singapore sovereign funds, Credit Agricole (ACA.FR), Colony NorthStar (CLNS) and Amundi SA (AMUN.FR), as well as other investors.

In a presentation, Accor said that the enterprise value of the entire unit is EUR6.25 billion.

"The entry of new shareholders and the deconsolidation of AccorInvest will provide AccorHotels with substantial leeway to enhance our dynamic growth and innovation strategy and create value for shareholders," said Sebastien Bazin, Accor's chairman and CEO.

Accor said it would use some of the proceeds of the sale for a share buyback of up to EUR1.35 billion as well as for potential mergers and acquisitions.

The deal, which is subject to antitrust and regulatory approvals, is expected to be finalized in the second quarter, Accor said.

Write to Euan Conley at [e-mail]

(END) Dow Jones Newswires

February 27, 2018 14:17 ET (19:17 GMT)

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