HNA Group, the parent of Hainan Airlines (600221) purchased a 20 percent stake in NH Hotels for a total of 431.6 million euros, or seven euros per share, according to a 21st Century Business Herald report, which cited Francisco Zinser Cieslik, C.E.O. of NH Hotels.
 
The purchase is pending the approval of the Chinese government, said Cieslik.
 
Upon the completion of the transaction, HNA Group will become the second-largest shareholder of NH Hotels and will be able to appoint two directors to the company's board. Cieslik expects the transaction to receive the approval of the Chinese government by July 16 and be completed by August 8.
 
 
NH Hotels is a Spanish hotel group which is the third-largest in Europe. It owns 400 hotels throughout Europe and recorded revenue of 1.32 billion euros in 2010.
 
 
In addition, HNA will establish a joint venture with NH Hotels in China to operate a chain of medium and high-end hotels. Cieslik said both parties are currently in discussions regarding the building of hotels in Beijing and Xi'an. HNA Group said last year that it plans to increase the number of its hotels to 100 in the next three-five years and will thereafter seek a listing of its hotel assets.
 
SOURCE: capitalvue.com
 
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