Cerberus Capital Management, L.P. and Orion Capital Managers, L.P. reached an agreement to acquire 96.99% stake in Sotogrande, S.A. from NH Hoteles S.A. for 230 million.
October 16, 2014 at 12:00 am
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Cerberus Capital Management, L.P. and Orion Capital Managers, L.P. reached an agreement to acquire 96.99% stake in Sotogrande, S.A. (CATS:STG) from NH Hoteles S.A. (CATS:NHH) for 230 million on October 16, 2014. The agreement, which does not include the international assets (Sotocaribe in Mexico, Sotogrande at Cap Cana in the Dominican Republic and Donnafugata Golf Resort & SPA in Italy) and certain rights and obligations of Sotogrande linked to judicial and off court proceedings, encompasses the sale of the assets of the developer behind this prestigious resort in Cadiz, which include land zoned for development, two hotels, two golf courses and the operation of sports and tourist services. Under the terms of the agreement, the two hotels will remain under NH Hotel Group's management for an initial period of two years. The cash generated will be allocated to financing shareholder value-creating investments, including the possible early repayment of part of its debt.
Jefferies International Limited acted as financial advisor to NH Hoteles S.A. Alejandro Ortiz, Rafael Molina, Fernando Ramos, Lucia Alonso, Sara Gonzalez, Javier Garcia, Javier Garcia-Pita, Alejandro Meca, Gabriel Cabello, Jose Gimenez, Roberto Sanchez and Anna Trallero Ocaña of Linklaters acted as legal advisors, KPMG and Lazard acted as financial advisors to Orion Capital Managers, L.P. and Cerberus Capital Management, L.P. Juan Miguel Goenechea, Manuel Echenique, Victor Viana, Cristina Gracia and David López Pombo of Uría Menéndez acted as legal advisors to NH Hoteles S.A. Javier Amantegui, Alfonso Benavides, Franc Pena, Pablo Serrano De Haro, Lauren Harris, Matt Taylor, Roberto Grau, Samir Azzouzi and Cristina Puerta of Clifford Chance acted as legal advisor for Orion. Ernst & Young Transaction Advisory Services Co., Ltd. acted as fairness opinion provider for Cerberus.
Sotogrande SA is a Spain-based company engaged in the real estate business sector. The Company administrates, promotes and sales properties in San Roque. Its main activities are divided into three areas: Real Estate, Golf and Hotels. It manages the development of residential properties, moorings, garages, offices, as well as restaurants, hotels and golf fields. In addition, Sotogrande SA is a parent company of Grupo Sotogrande. The Group controls a number of companies, such as Club Deportivo Sotogrande SA, Resco Sotogrande SL, Donnafugata Resort Srl, Residencial Marlin SL, Los Alcornoques de Sotogrande SL, Santa Barbara Golf SA and Capredo Investment GmbH. Furthermore, the Company is a subsidiary of NH Hoteles SA, a worldwide chain of hotels.
Cerberus Capital Management, L.P. and Orion Capital Managers, L.P. reached an agreement to acquire 96.99% stake in Sotogrande, S.A. from NH Hoteles S.A. for €230 million.