On Monday Arena presented its results and here we bring you key takeaways from the event.
Prior to the presentation we wrote a blog on Arena Hospitality Group which you can check here link. The company has announced that it plans to spend 55% of HRK 788m obtained during public offering on existing developments in Croatia and Germany while the rest will be spent on expansion on potential opportunities in Croatia and CEE markets. The share is currently traded at 22% discount to its IPO share price of HRK 425 that occurred in May 2017. Planned investments in 2019 amount to HRK 240.5m while one of its biggest asset’s hotel Brioni, that will make a strong addition to it upscale Park Plaza portfolio, will be developed for the season 2022. The app. amount of investment for hotel Brioni is estimated at HRK 190 mil. while the exact room number to be developed is not yet certain.
Arena Hospitality Announced Investments (HRK m)
For 2019 results positive impact on sales will be led by increase in Croatian portfolio via camp capacity in of 152 mobile homes while the rest of the capacity in Croatian portfolio will be the same as in 2018. Therefore boost to sales in 2019 is expected to come from increase in capacity and premium rates in camping that will be charged for Arena Kažela Kamp premium mobile homes complex. We do not expect ADR to increase on hotel capacity in Croatia as demand for Croatia is decreasing due to strong growth of demand for competitive markets like Turkey and Greece.
The potential upside for revenue and profitability in 2019 can come from adding new hotels to its portfolio in the region where the company has management contact for Park Plaza brand. As company is looking to expand its city hotel portfolio, it will be aiming potential acquisitions in Germany or in CEE region. Adding hotels under management is very competitive segment so we expect to see company doing more fully-fledged acquisitions. The company announced that is it keen on curbing growth of labour costs in German business by importing skilled work force under more favourable rates and restructuring of Food and Beverage department where more hotel services will be outsourced. Growth of expenses for distribution channel is expected to be partially counterweighed by reduction in marketing costs as online channels are taking over part of the marketing. The company didn’t give any guidance for 2019 but we expect German portfolio to continue its positive development and increase its share in total revenue of the company. Further increase in occupancy rate in 2019 is expected while ADR is not expected to grow higher than in 2018 (1%).
Imperial concluded a deal with TUI UK regarding the continuation of hospitality services for seasons 2019, 2020, 2021.
Imperial published a document in which they state that they have concluded a deal with TUI UK regarding the continuation of hospitality services, by which the company would ensure partial occupancy of the Valamar Carolina Hotel. The deal includes seasons 2019, 2020 and 2021 and is estimated to be worth EUR 8.68m. Note that each year a new separate sessional contract will be concluded of which the one concluded for 2019 is worth EUR 2.53m.
The total value of the deal amounts to 36.4%, while the deal concluded for 2019 amounts to 10.6% of the 2018 operating revenues.
The company will be included in the index as of 18 March 2019.
The Index Committee of the Bucharest Stock Exchange decided to include Alro in the BET index and in BET-TR (the total return version of BET). This means that the BET index will now include 16 companies, which is the largest amount in its history.
Alro is a subsidiary of Vimetco N.V., a global primary and processed aluminum company. Alro is one of the largest vertically integrated aluminum producers in Europe, based on capacity, with an installed production capacity of 265,000 tpa. The main markets for the company’s products are the European Union member states, but the company also exports to the USA and Asia.
Alro’s shares started trading on BVB on 16 October 1997. Currently, the company has a market capitalization of approximately RON 1.67bn (EUR 352m).
The company will be included in the index as of 18 March 2019.
To read about Alro’s 2018 preliminary results click here.
The Board of Directors of Banca Transilvania has approved the buyback of 15m shares.
Banca Transilvania published a document in which they inform their investors that the Board of Directors of Banca Transilvania has approved the buyback of 15m shares (of the total of 35m shares approved for buyback by the Extraordinary General Shareholders’ Meeting). The share buyback would make for 0.3% of the total number of shares.
The buyback will be done at a nominal value of RON 1 per share as well as at a price at least equal with the BSE market price at the moment of the acquisition and at a maximum price of RON 4, in accordance with the daily transaction price on BSE for the period of share buyback. At the current share
Bids are open from 5 March until 30 March 2019.
To read about Banca Transilvania’s 2018 preliminary results click here.
To read our blog on share buybacks click here.
The offer of RSD 180 per share relates to the 31.8% of the outstanding shares held by the minority shareholders and lasts until 26 March 2019.
Victoria Group issued a takeover bid for Sojaprotein, the largest soybean processing factory in Serbia, whose market capitalization is EUR 20.9m. On 24 January, Victoria purchased a 13.2% stake in Sojaprotein at RSD 180 per share, which corresponds to the takeover bid price.
The offer of RSD 180 per share relates to the 31.8% of the outstanding shares held by the minority shareholders and lasts until 26 March 2019.
As a reminder, last year, MK Group took over Victoria, after buying out its debts from the banks. After this event, the obligation to announce a takeover bid for its subsidiaries Veterinarski Zavod and Sojaprotein occurred.