On July 27^th the Croatian Restructuring and Sale Center has accepted Valamar Riviera d.d.’s binding offer to purchase 50,08% of shares of the company Imperial d.d. at 819 HRK per share.

Imperial d.d. is the largest tourism company on the island of Rab accounting for roughly a third of the island’s two million overnights in 2015. Imperial owns and operates a total capacity of 7.513 beds in 1.225 hotels and resort keys and 1.630 units in campsites. In 2015. Imperial d.d. posted 129,4 million HRK in revenues and 17,1 million HRK in net profit. 

Valamar Riviera submitted the only valid offer for the purchase of Imperial d.d. shares by the July 5^th deadline, offering 819 HRK per share or 2,82 HRK more per share over the set minimum price, amounting to a total consideration for the 50,08% stake of 260.807.274,00 HRK. The offer implies a total valuation of the company at 640.9 million HRK, setting the acquisition multiple to 12,4 if applied to 51,5 million HRK of EBITDA realized in 2015. This relatively high valuation of Imperial Rab is driven by the investment in hotel Padova of 63 million HRK repositioning the property to 4 stars in 2016 that will drive revenue and operating profit growth, as well as expected synergies to be realized under Valamar Riviera’s future management from revenue management and operational efficiencies.

Valamar Riviera and AZ have signed a cooperation agreement and are acting jointly in the takeover process of Imperial d.d. citing benefits of combining the financial strength of the largest institutional investor in Croatia and the tourism management expertise of the leading hospitality company in Croatia.  AZ currently holds a 9,45% shares of Imperial Rab. It is expected that Valamar Riviera and AZ fond will launch a joint takeover bid for the remaining shares in Imperial.  According to the cooperation agreement, Valamar Riviera and AZ are aiming at a ratio of 60:40 share ownership in Imperial, with Valamar becoming the larger shareholder.

Valamar Riviera and AZ see a considerable potential in further developing the tourism offer on Rab island as a prime Croatian tourism destination based on significant future investments in the portfolio and the destination aimed at raising the quality of the hospitality offer towards upscale market segments, improved corporate governance, and on continuing to support a close cooperation with the local community in achieving sustainable tourism and economic development of the island of Rab.

Contacts:

Valamar Riviera d.d.

Deana Stipanović, Head of corporate affairs

Phone: 052 408 000, Mobile: 385 99 317 2308

E-mail: deana.stipanovic@valamar.com

AZ obvezni mirovinski fondovi

Nataša Hrabar, Head of marketing, PR and CRM

Phone: 01 46 99 682, Mobile: 385  91 4699 682

E-mail: natasa.hrabar.kastelan@azfond.hr

Valamar Riviera d.d. is the leading Croatian hospitality company operating a capacity of over 48,000 beds in 25 hotels and resorts and 13 camping resorts on the Adriatic, including Istria, Krk island and Dubrovnik. The acquisition of Imperial d.d. will enlarge Valamar’s total portfolio capacity by roughly 15% and will extend Valamar’s presence in Kvarner region to Rab island. In 2015, Valamar achieved 1,3 billion HRK in revenues and 423 million HRK in EBITDA from tourism operations.  Valamar’s share is one of the most liquid shares listed on the official quotation of the Zagreb Stock Exchange with a total market capitalisation of over 3 billion HRK. Valamar Riviera has recently announced a strategic goal of investing up to 2 billion HRK in tourism assets until the year 2020. 

AZ mandatory pension funds are the largest institutional investor in the Republic of Croatia, with total assets under management amounting to over 30 billion kuna, where over 600.000 Croatian employees currently invest their pension savings. As part of its investment strategy, AZ is committed to increase its investments in Croatian tourism given that such investments are strategically aligned with the long-term interest of the fund’s potential members. AZ is a significant shareholder in Arenaturist, Plava Laguna, Ilirija and other tourism companies on the Zagreb Stock Exchange.