The owner of Ireland’s Maldron and Clayton hotel chains today rejected a €1.3 billion all-cash takeover from a pair of European property investors.
Dublin-headquartered Dalata Hotels Group, which has its shares listed in London, said the takeover offer “materially undervalues” the business and its expected future growth.
The proposed deal, priced at €6.05 per share, came from a joint vehicle formed by Swedish hotel property giant Pandox AB and Norwegian investor Eiendomsspar AS, which already owns 8.8% of Dalata’s shares.
The takeover bid marked a 27% premium to Dalata’s share price in early March, when the company first initiated a formal sale process as part of a strategic business review.
But, Dalata’s board today confirmed it has rejected the unsolicited approach, stating that the proposal does not reflect the true value or potential of the company’s expanding hotel platform.
Dalata added it would continue to hold constructive talks with other parties involved in its ongoing sale process.
Pandox and Eiendomsspar’s offer was made outside of the structured process.
In their own statement, the bidders said their proposal “delivers tangible and certain value” to shareholders, fully in cash and at a meaningful premium. They added that discussions are underway with a “reputable European hotel operator” to manage the Dalata portfolio if the transaction proceeds.
Currently, Pandox owns a portfolio of 163 hotels across 11 countries - including the Hilton London Heathrow Airport, Leonardo Royal Hotel in Birmingham, The Midland Manchester, The Queens Hotel in Leeds, along with a range of other branded hotels in Scandinavia and continental Europe.
The potential takeover comes amid a wave of consolidation interest across Europe’s hospitality sector, with investors keen to secure strategic assets in key urban markets.
Dalata, which operates more than 50 hotels across Ireland and the UK, has seen a post-pandemic rebound in travel drive a resurgence in its earnings.
Nonetheless, it appears this takeover story may have a number of further twists and turns in the days and weeks to come, given that rival suitors are still in play.
The future of Ireland’s largest hotel operator, with its popular Maldron and Clayton brands, will be keenly watched.
