29.05.2017

Arena Hospitality Group d.d. successfully completes the public offering of new shares

Arena Hospitality Group d.d. ,headquartered in Pula, is pleased to announce that it has successfully completed the public offering of its shares.

Arena Hospitality Group d.d. ("Arena" or the “Company”), headquartered in Pula, is pleased to announce that it has successfully completed the public offering of its shares.

On 12 May 2017, Arena announced that it was seeking to raise between HRK 600m and HRK 750m (after expenses) by issuing up to 2 million new ordinary registered shares (“New Shares”) within a price range of HRK 400 to HRK 500 per share. Following the public offering of its shares to Croatian and international investors, Arena will issue 1,854,971 New Shares at a price of HRK425 per New Share which will result in the Company receiving proceeds of HRK788,362,675 before expenses.

Trading in the New Shares on the Zagreb Stock Exchange is expected to commence on or around 6 June 2017.

PPHE Hotel Group Limited (“PPHE Hotel Group”), via its wholly owned subsidiary, will be issued 141,883 New Shares. Following the issue of the New Shares, PPHE Hotel Group will indirectly hold 51.97% of the Arena’s share capital.

Arena’s public offering of shares is the first international public offering by a Croatian tourism company and the largest fundraising by a Croatian company since 2007.

The proceeds from the public offering of shares are expected to be used for:

  1. acceleration of the implementation of Arena Group’s capital investment plan aimed at upgrading a number of its properties in Croatia and funding the Arena Group expansion in the CEE Region;
  2. exercising an option to acquire the remaining 12% of the interest in Sugarhill Investments B.V. (including associated transaction costs) from the PPHE Hotel Group, following which Arena will indirectly own the entirety of its operations in Germany and Hungary; and
  3. repayment and refinancing Arena’s debt where appropriate in order to achieve more favourable financing terms.