GP Investments, Hamilton, Bermuda, announced last week that Latin America Hotels, controlled by GP’s equity fund GP Capital Partners IV, is launching a consolidated tender offer to purchase all of the common shares held by the other shareholders of Brazil Hospitality Group (BHG), São Paulo.
The price offered in the offer will be 19 reais (US$8.35) per share, thus valuing BHG at an equity value of 1.2 billion reais (US$530 million). This price per share represents a 36% premium to the closing price on August 8.
JHL Capital Group, who currently holds approximately 21.5% of BHG, confirmed its commitment to support GP’s offer. The buyout would result in BHG’s delisting.