MyHotelMatch, a company in the Ott galaxy, announces a merger project with Courbet Heritage.
Governance
Courbet Heritage is nearly entirely owned by the Ott family. MHM has less than 30% ownership by the Ott family. Given the valuation advantage of Courbet Heritage, the Ott family’s stake in NewMHM would exceed 30% if the transaction were fully compensated with MHM new shares, necessitating a waiver from the French AMF. Regardless, we expect the Ott family to maintain significant influence over NewMHM, which will become their primary listed SPV. This transaction will effectively move Courbet Heritage shares from the OTC market to the regulated Euronext market, where MHM is currently listed, enhancing transparency for Courbet Heritage’s minority shareholders.
Economic implications
Economically, Courbet Heritage will become MHM’s primary activity, as MHM’s main business, the Conciergerie, has been sold. Essentially, NewMHM will closely resemble Courbet Heritage’s current economic structure.
Transaction
The specifics of the merger are currently unknown. In a 100% share deal, the exchange terms must be evaluated. If a cash component is included, it will provide clarity on the valuation of Courbet Heritage shares.
The merger project does not require changes to our assumptions about Courbet Heritage. Courbet Heritage should disclose information about its portfolio to clarify the valuation.
Courbet’s portfolio requires significant investment in works, along with details on the timeline for planning authorisations and the economic parameters of the investments, such as rents, yield on cost, financing and the business model of each asset.
