Accor strikes deal with Jinjiang International for share repurchase

Wednesday, March 13, 2024

Accor has announced the successful conclusion of a share purchase agreement on March 11, 2024, to buy back 7 million of its own shares, constituting 2.77% of its capital, from Jinjiang International. The agreed price per Accor share for this transaction is €39.22, representing a 3.0% discount compared to the closing price on March 11, 2024, which stood at €40.43.

This share repurchase, totaling €275 million, forms a part of Accor’s €400 million share buyback program for 2024. The remaining portion of the program will be executed in the near future.

Upon completion of the transaction and the subsequent cancellation of the repurchased shares, Jinjiang International’s stake in Accor will decrease from 7.96% to 5.33% of the share capital. Jinjiang International has agreed to adhere to a 7-month orderly disposal provision in case of a market trade.

This transaction is expected to yield an accretive effect on the shareholding of all Accor’s shareholders and further solidify Accor’s ownership structure, while allowing the company to maintain significant financial flexibility to support its future development and shareholder returns. Moreover, the transaction is projected to increase Accor’s earnings per share by approximately 1.5% on an annualized basis.

The transaction has received unanimous approval from Accor’s Board of Directors. In line with the recommendation by the Autorité des Marchés Financiers DOC-2017-04, the Cabinet Ledouble, represented by Madame Agnès Piniot and Madame Stéphanie Guillaumin, has been appointed by the Board of Directors as an independent expert tasked with issuing a fairness certificate.

Following a thorough evaluation of Accor’s share valuation, the independent expert has determined that:

• The price of the repurchased Accor shares is fair for Accor and its shareholders from a financial standpoint.
• The transaction has no adverse impact on Accor’s financial condition.
• The transaction, conducted in Accor’s best interest, will be beneficial for its shareholders and is treated as a related party transaction.

The share repurchase, to be executed through an off-market block trade, is not contingent on any conditions precedent and is expected to be finalized in the coming days.

Mr Sébastien Bazin, Chairman of the Board of Directors and CEO of Accor, declared: “The transaction demonstrates both our strong confidence in Accor’ growth potential and our commitment to returning cash to our shareholders. It also is a mark of the friendly and trusted relationships between Accor and Jinjiang International, which we thank for their continuous support.”

Mr. Qi Zhao, Chairman of Jinjiang International declared: “We have been enjoying over the past years a trustful and respectful relationship with Accor and we are very pleased to have carried out this transaction. We continue to have strong confidence in the prospects of Accor.“

Based on the total count of 252,289,352 Accor shares as of February 29, 2024.

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