Symphony International Holdings Ltd Update on Minor International PCL (7231D)

TIDMSIHL

RNS Number : 7231D

Symphony International Holdings Ltd

28 June 2019

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Symphony International Holdings Limited ("Symphony")

28 June 2019

Update on Minor International PCL

Symphony International Holdings Limited (LSE: SIHL) is pleased to announce that Minor International Pcl ("MINT"), Symphony's largest portfolio investment, has entered into agreements to sell and leaseback three hotel properties in Lisbon, Portugal to Invesco Real Estate. The gross selling price for the properties is EUR313 million that has generated a EUR62 million gain for MINT. The transaction is value accretive to MINT shareholders, which underscores our long-standing confidence in the ability of MINT's management to consistently generate incremental value for its shareholders.

MINT's Press Release on this transaction, dated 27 June 2019, is reproduced below.

MINOR INTERNATIONAL PCL

PRESS RELEASE - 27 June 2019 FOR IMMEDIATE RELEASE

MINT Announces Sale & Leaseback of Three Properties in Lisbon, Portugal

Minor International ("MINT") today announced that it has entered into agreements to sell three of its hotel properties in Lisbon, Portugal--Tivoli Avenida Liberdade Lisboa, Tivoli Oriente Lisboa and AVANI Avenida Liberdade Lisbon--to Invesco Real Estate, the global real estate investment manager ("Invesco"). The hotels are being sold for an aggregate gross selling price of EUR 313 million, implying an accretive net disposal EV/EBITDA of approximately 19x and a net gain of EUR 62 million to MINT in 2019. Following completion of the hotel sales, MINT's subsidiary NH Hotel Group ("NHH") will operate the hotels under lease agreements for an initial term of 20 years with options to extend for a total term of up to 60 years. Subject to customary closing conditions, the sale and leaseback of these properties is expected to be completed during the third quarter. Following the transaction, the hotels will continue to be operated by MINT through NHH under their current brand names.

Strategically, the transactions: (i) increase the internal rate of return of MINT's 2016 acquisition of the 14-asset Tivoli portfolio to over 20% on an unlevered basis, (ii) pay back nearly the entire capital deployment from MINT's 2016 Tivoli acquisition through the sale of only three of the 14 acquired Tivoli properties while still retaining over 75% of the total portfolio EBITDA, and (iii) allow MINT to retain continued upside from the hotels through sustainable leases in partnership with a strong institutional investor, while retaining ownership of the Tivoli brand and its Portuguese and Brazilian operating platforms.

Going forward, MINT will continue to maximize value creation for its shareholders. This will be done through selective pursuit of new acquisition opportunities and further initiatives to strengthen its balance sheet by considering strategic asset rotation. In terms of asset initiatives, as a result of MINT's 94% investment in NHH MINT now has a strong platform to engage with respected hotel real estate institutional investors in Europe and Latin America and deep experience in structuring and operating under long-term sustainable lease structures, opening an important new strategic channel for growth and shareholder returns.

"The completion of the sale and leaseback transaction is a key milestone for MINT, Minor Hotels and NHH," said Mr. Dillip Rajakarier, COO of MINT and CEO of Minor Hotels. "The transaction underlines our ability to strategically rotate assets in partnership with the right institutional investor, with whom we will share future earnings. Completion of the transaction will strengthen our balance sheet, as we have committed to do, allow MINT to retain significant value and further upside through sustainable long-term leases of the properties under our brands and realize further operational improvement through efficiencies across the NHH Southern European Platform. The transaction demonstrates a tangible strategic enhancement of the overall portfolio with MINT's ability to yield strong returns in developed markets, in addition to our proven track record in emerging markets with secular high growth potential. MINT is fully committed, as ever, to deliver value to our shareholders, whether in the form of operational growth, new acquisition opportunities or asset enhancement and rotation."

About Minor International: Minor International (MINT) is a global company focused on three core businesses: hospitality, restaurants and lifestyle brands distribution. MINT is a hotel owner, operator and investor with a portfolio of 516 hotels under the Anantara, AVANI, Oaks, Tivoli, NH Collection, NH Hotels, nhow, Elewana, Marriott, Four Seasons, St. Regis, Radisson Blu and Minor International brands in 54 countries across Asia Pacific, the Middle East, Africa, the Indian Ocean, Europe, South and North America. MINT is also one of Asia's largest restaurant companies with over 2,200 outlets system-wide in 27 countries under The Pizza Company, Swensen's, Sizzler, Dairy Queen, Burger King, Thai Express, The Coffee Club, Riverside and Benihana brands. MINT is one of Thailand's largest distributors of lifestyle brands and contract manufacturers. Its brands include Anello, Bodum, Bossini, Brooks Brothers, Charles & Keith, Esprit, Etam, Joseph Joseph, OVS, Radley, Save My Bag, Zwilling J.A. Henckels and Minor Smart Kids. For more information, please visit www.minor.com.

About Invesco: Invesco is an independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. NYSE: IVZ; www.invesco.com.

About Invesco Real Estate: Invesco Real Estate is a global leader in the real estate investment management business with EUR61.5bn in real estate assets under management, 508 employees and 21 regional offices across the U.S., Europe and Asia. The firm was established in 1983 and has been actively investing in core, value-add and opportunistic real estate strategies since 1992. In Europe, IRE has eight offices in London, Munich, Milan, Madrid, Paris, Prague, Luxembourg and Warsaw, and around 155 employees. It manages 160 assets across 13 European countries and with assets under management of EUR11.1bn.

For further information:

   Chaiyapat Paitoon / Jutatip Adulbhan       [phone] 

Minor International Pcl

   Anil Thadani                                             [phone] 

Symphony Asia Holdings Pte. Ltd.

Numis Securities Limited:

   Hugh Jonathan                                          [phone] 

Nathan Brown

About Symphony

Symphony is a London listed strategic investment company that invests in a wide variety of businesses in the healthcare, hospitality and lifestyle ("HH&L") sectors (including branded real estate developments), which are principally in Asia. It offers a way for investors to gain exposure to businesses that benefit from the rising disposable incomes and wealth creation in the fast growing economies of Asia. Symphony's objective is to provide superior capital growth by investing in high quality companies and forming long-term business partnerships with talented entrepreneurs. Symphony is managed by Symphony Asia Holdings Pte. Ltd., which has a team of investment professionals with a broad range of expertise - many of them have been working in Asia for more than 25 years. For more information, please visit our website at www.symphonyasia.com

No representation or warranty is made by the Company as to the accuracy or completeness of the information contained in this announcement and no liability will be accepted for any loss arising from its use.

This announcement is for information purposes only and does not constitute an invitation or offer to underwrite, subscribe for or otherwise acquire or dispose of any securities of the Company in any jurisdiction. All investments are subject to risk. Past performance is no guarantee of future returns. Prospective investors are advised to seek expert legal, financial, tax and other professional advice before making any investment decisions.

This announcement is not an offer of securities for sale into the United States. The Company's securities have not been, and will not be, registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or an exemption from registration. There will be no public offer of securities in the United States.

The Company and the Investment Manager are not associated or affiliated with any other fund managers whose names include "Symphony", including, without limitation, Symphony Financial Partners Co., Ltd.

End of Announcement

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June 28, 2019 02:00 ET (06:00 GMT)