PARIS—Two private equity firms said Monday they plan to raise their combined stake in French hotels group Accor SA to 30 percent from just over 17 percent. Shares of the owner of the Motel 6 chain rose 2.7 percent by midday in Europe.
Paris-based Eurazeo said in a statement it has agreed on a five-year pact with Los Angeles-based Colony Capital to unite forces as shareholders in Accor. The two firms said they do not intend to seek control of the hotel group, which includes the up-market Sofitel and Pullman chains, medium-range Novotel and Ibis, as well as budget U.S. brand Motel 6.
Eurazeo said it wants to increase its stake to 10 percent and is seeking board representation while Colony Capital wants to increase its participation to 20 percent. The two companies currently hold 17.52 percent of the company and 15.71 percent of the voting rights, Accor said in a statement.
Accor shares rose 2.7 percent to 55.6 euros ($85.95) by midday in Paris, giving the company a market value of 12.79 billion euros ($19.77 billion). Based on Monday's share price, a 30 percent stake in Accor would be worth 3.8 billion euros ($5.87 billion).
Accor said it would consider offering a board seat to Eurazeo in addition to the two already held by Colony, providing that both firms support the company's strategy and guarantee they are not planning a takeover.
"The board intends to act to prevent a takeover of Accor that does not include a full bid for all the equity shares," Accor said in a statement.
Eurazeo said its joint move with Colony shows "confidence in the management team and their strategy, the group's potential for value creation and the strength of its assets."
