15th Jul 2025 09:27
(Alliance News) - Dalata Hotel Group PLC on Monday agreed to a EUR1.4 billion cash takeover offer from an acquisition vehicle owned by Pandox AB and Eiendomsspar AS.
The vehicle will pay EUR6.45 per share of Dalata, valuing the Dublin-based operator of the Maldron and Clayton hotel chains at EUR1.4 billion.
On Tuesday morning in London, Dalata shares were marginally higher at 553.57 pence, about EUR6.37, giving it a market capitalisation of GBP1.39 billion.
Pandox is a Stockholm-based hotel developer and Eiendomsspar an Oslo-based real estate firm. They have partnered to form Pandox Ireland Tuck Ltd, which describes itself as " well-positioned to support Dalata's business and long-term growth ambitions".
The offer is 35% higher than Dalata's closing price on March 5, the day before the Irish firm began a strategic review and sale process. The bid also upgrades an approach from the consortium back in June, when it offered EUR6.05 per share, or EUR1.3 billion in total.
Dalata noted that the EUR1.4 billion price tag exceed its highest equity market capitalisation since listing in 2014.
Dalata in March said it was putting itself up for sale because it did not consider its share price a fair reflection of the company's value.
This followed a 14% decline in annual pretax profit to EUR91.2 million from EUR105.5 million. Still, Dalata's revenue rose 7.3% in 2024 to EUR652.2 million from EUR607.7 million in 2023, leading the Irish firm to raise its final dividend by 5.0% to 8.4 euro cents.
Dalata on Tuesday said the acquisition was "in the best interests of Dalata shareholders and represents the most effective route to enhance value", compared to the other options considered during the review.
Dalata Chief Executive Dermot Crowley added: "This represents an exciting new chapter for Dalata in which we will become part of a larger hotel platform and will further accelerate our growth."
The Pandox Ireland Tuck already owns about 9.8% of Dalata. On completion of the deal, Pandox expects to own 92% of the acquisition vehicle, with Eiendomsspar owning 8.5%. Eiendomsspar itself owns around 36% of Pandox voting rights.
The Dalata takeover is conditional on shareholder approval but is expected to take effect in the fourth quarter of 2025.
By Holly Munks, Alliance News reporter
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