On Friday after the market’s close, the regulator (HANFA) approved Tankerska Plovidba’s takeover bid announcement for TURISTHOTEL (TUHO). In the document, the takeover price of HRK 4.6k (EUR 610.53) per share was revealed, representing a premium of 4.98% over the 3-month VWAP and 11% on the 1-year VWAP.

The requirement for the publishing of the takeover bid came into effect on 18 January 2023, when Tankerska Plovidba (the acquiring company), purchased additional 53,594 shares of TUHO, representing 14.61% of the share capital and 14.74% of the voting rights. With the purchase, Tankerska Plovidba owned 144,272 shares or 39.34% of the share capital which required them to announce the takeover bid for all the remaining shares. The official takeover bid announcement by TUHO should be published in the next couple of days.

The takeover price amounts to EUR 610.53 (HRK 4,600) per share. This price represents a premium of 4.98% on the 3-month VWAP or 11% on the 1-year VWAP.

The takeover price translates into a double-digit 10x EV/EBITDA multiple. The multiple comes as justified especially taking into account that the implied multiple is on average 18% above Croatian’s tourist large caps (Valamar, Maistra, Plava laguna) and that the market is operating in the midst of a challenging macroeconomic environment.