...+ Lodging group Accor S.A. (Accor) has announced agreements with a number of investors to sell a 55% stake in AccorInvest (Booster transaction) resulting in net cash proceeds of 4.4 billion and has capped its voting rights in AccorInvest at 30%. The transaction is subject to regulatory approvals and is expected to close in Q2 2018. + We understand that the sale proceeds will fund acquisitions (including the ongoing purchase of Australian hotel and resort operator Mantra for 0.9 billion) and an up to 1.35 billion share buy-back program over the next 24 months, and management has announced a financial policy of not exceeding 2.5x net debt to EBITDA, with which we are aligning our rating on the company. + While the sale of 55% of hotel owner and operator AccorInvest will benefit Accor's credit profile, the company's significant economic and operational exposure to highly leveraged AccorInvest entails some credit risk. This is why we have tightened some of our financial ratio expectations for...
