Playa Hotels & Resorts is clearing the final hurdles before Hyatt Hotels Corp. can acquire it, with the $2.6 billion deal potentially closing within a week.
Playa has received all the required antitrust approvals from Mexico’s Ley Federal de Competencia Económica, according to a news release. The approvals were the final regulatory step to complete the deal.
After the subsequent offering period and related transactions required by the purchase agreement, Playa said it expects Hyatt will own all its ordinary shares by or about June 17.
Playa has submitted written notice to NASDAQ of its intention to voluntarily delist its ordinary shares from Nasdaq on the condition of the expiration of Hyatt’s tender offer and its acquisition of all its ordinary shares validly tendered. If this occurs by or about June 16, Playa will file with the U.S. Securities and Exchange Commission a notification of removal from listing of its ordinary shares on Nasdaq.
In February, Hyatt announced its intent to buy the publicly traded Playa, an owner and operator of 24 resorts across the Caribbean and Latin America. The deal priced Playa’s shares a $13.50 per share and included the assumption of $900 million of debt. Hyatt intends to sell off Playa’s owned real estate with a target of $2 billion in asset sales by the end of 2027.
Hyatt made an initial tender offer set to expire on April 25 but extended the deadline twice, with the latest expiring June 9.
The pending transaction is the latest in Hyatt’s strategy to grow in the all-inclusive resort space. It bought Apple Leisure Group for $2.7 billion in 2021. In October, Hyatt formed joint venture with Grupo Piñero to bring the Bahia Principe brand's properties as well as the Cayo Levantado resort in the Dominican Republic into Hyatt's Inclusive Collection.
During Hyatt’s first-quarter earnings call on May 2, Hyatt President and CEO Mark Hoplamazian said the company issued $1 billion of senior notes and closed on a $1.7 billion delayed draw term loan. Hyatt plans to use the net proceeds from the senior notes offering and future proceeds to be drawn from the new term loan to finance the Playa deal.
"We're just in a waiting pattern right now for clearance on antitrust. I think that's the one that we're focused on," he said, adding that it's specifically antitrust clearance in Mexico he's speaking about. "I think we will get to the tender level that we have as a minimum requirement."
When announcing the deal, Hoplamazian said Hyatt has benefited from Playa’s operating expertise and guest experience delivery through its ownership and management of eight Hyatt Ziva and Hyatt Zilara hotels.
“This pending transaction allows us to broaden our portfolio while providing more value to all of our stakeholders through an expanded management platform for all-inclusive resorts,” he said.