Collapse of Mirae-Anbang deal reassures institutional investors The move eliminates the need for a possible sell down of U.S. hotels hit hard by slowdown
Translated by Ryu Ho-joung 공개 2020-05-13 08:00:37
이 기사는 2020년 05월 13일 08:00 thebell 에 표출된 기사입니다.
Mirae Asset Group’s decision to call off the acquisition of U.S. luxury hotels from China’s Anbang Insurance Group appears to have been welcomed by some domestic institutional investors, as concerns are mounting that the economic fallout from the COVID-19 outbreak will likely cripple the hotel industry for a long time.Until recently Mirae Asset was continuing its marketing effort to raise funds for the acquisition of Anbang’s U.S. hotels, approaching several institutional investors like mutual aid associations and pension funds for its sell-down plan.
“Mirae Asset offered an opportunity for investing in the hotels, though details on a deal structure were not discussed,” a mutual aid association official said. “Some institutions have committed their investment.”
But a sell-down plan for its prospective hotel portfolio has been canceled after the South Korean financial conglomerate decided to back away from the transaction with Anbang, a decision that could lead to increased reputational risk for Mirae Asset.
However, on the contrary, the market is seeing a positive investor response on the collapse of the Mirae-Anbang deal, with the news seemingly welcomed by institutional investors who pledged their commitment to Mirae Asset.
“We were approached by Mirae Asset but concluded that the risks of the investment are high,” another mutual aid association official said. “Risks are rising that hotels could generate cash flow smaller than expected due to headwinds in the hotel industry.”
Mirae Asset had initially agreed to buy 15 U.S. hotels from Anbang for $5.8 billion (about seven trillion won) last year, while it reportedly planned to raise 500 billion won for the acquisition by reselling its stake in the U.S. hotels to institutional investors in the form of preferred shares paying a five percent dividend per year.
However, with the hotel industry severely hit hard by the COVID-19 outbreak, concerns are rising that hotels around the world could face bigger headwinds in the future, which dented investor sentiment toward this sector.
“Institutional investors who pledged their investment to Mirae Asset seemingly breathe a sigh of relief that the acquisition was canceled,” an industry insider said.
“Unsuccessful sell downs of its shareholdings in Tour Majunga in Paris as well as the combined entity of SK Braodband and Tbroad have been already a blow to reputation of Mirae Asset.,” he noted, adding that calling off the acquisition of U.S. hotels was a positive for the financial conglomerate after all, as the move has eliminated the possibility of the sell-down overhang.
Mirae Asset Daewoo acquired Tour Majunga in Paris last year in a partnership with French asset manager Amundi, with the Korean firm taking over an 85 percent stake in the office building. Mirae Asset Daewoo is continuing its sell down of Tour Majunga, though the pace appears to be much slower than expected.
(By reporter Kim Byung-yoon)
< 저작권자 ⓒ 자본시장 미디어 'thebell', 무단 전재, 재배포 및 AI학습 이용 금지 >
관련기사
best clicks
최신뉴스 in 전체기사
-
- '재무개선' AJ네트웍스, 조달비용 '확' 낮췄다
- '9년만에 엑시트' 한앤코, 한온시스템 거래구조 살펴보니
- 한국타이어앤테크놀로지, 한온시스템 인수한다
- [수술대 오른 커넥트웨이브]2대주주 지분매입 나선 MBK, 주식교환 카드 꺼냈다
- [이사회 모니터]이재용 에이비프로바이오 대표, 바이오·반도체 신사업 '드라이브'
- 와이투솔루션, 주인 바뀌어도 '신약' 중심엔 美 합작사 '룩사'
- 아이티센, 부산디지털자산거래소 본격 출범
- 아이에스시, AI·데이터센터 수주 증가에 '날개'
- [이사회 모니터]서정학 IBK증권 대표, ESG위원회도 참여 '영향력 확대'
- SW클라우드 '10주년' 폴라리스오피스, “초격차 밸류업”