Merger Project with MHM
Merger Project with MHMM&A /CORP. ACTION
MyHotelMatch, a company in the Ott galaxy, announces a project to merge with Courbet Heritage.
FACT
MHM may purchase Courbet Heritage.
Regulatory approval is necessary.
ANALYSIS
Governance
The Ott family almost entirely owns Courbet Heritage, with the Ott family owning less than 30% of MHM. Given Courbet Heritage’s valuation advantage, if the transaction were fully compensated with new MHM shares, the Ott family’s stake in NewMHM would exceed 30%, requiring a waiver from the French AMF. Regardless, we anticipate the Ott family will retain significant influence over NewMHM, which will become their main listed SPV. This transaction will effectively shift Courbet Heritage shares from the OTC market to the regulated Euronext market, where MHM is currently listed, improving transparency for Courbet Heritage’s minority shareholders.
Economic implications
Economically, Courbet Heritage will become the primary activity of MHM, as MHM’s main business, the Conciergerie, has been sold. Essentially, NewMHM will closely mirror the current economic structure of Courbet Heritage.
Transaction
The details of the merger are currently unknown. In a 100% share deal, the exchange terms need to be evaluated. If a cash component is included, it will provide clarity on the valuation of Courbet Heritage shares.
IMPACT
The merger project does not necessitate alterations to our presumptions regarding Courbet Heritage. Courbet Heritage should reveal information about its portfolio to elucidate the valuation.
Courbet’s portfolio necessitates substantial investment in works, in addition to details on the timeline for planning permissions and the economic parameters of the investments, such as rents, return on cost, financing, and the business model of each asset.
Courbet SA. Courbet SA, formerly Societe Anonyme Courbet, is a France-based company engaged in investments in industrial and commercial undertakings and asset management.
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