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A consortium consisting of Swedish hotel property company Pandox and Norwegian group Eiendomsspar has increased its stake in Dalata Hotel Group to around 10%.
Earlier this month, the consortium attempted to buy the whole company for around £1.1bn but this was “unanimously rejected” by the Dalata board. Dalata described the proposal as “an unsolicited, non-binding proposal from the Pandox Consortium” that “materially undervalued” the business.
In its latest update, Dalata confirmed that Pandox Ireland DAC had purchased 1,698,112 ordinary shares in Dalata at a price of €6.30 (£5.40) per share, representing approximately 0.8% of the issued share capital of Dalata.
It also confirmed that Pandox had not made an offer of this level and had submitted no further proposals since the initial bid. Dalata is still continuing to engage with parties as part of a formal sales process.
According to Irish takeover rules, the consortium has until 5pm BST on 15 July to either announce a firm intention to make an offer for Dalata or announce it does not intend to.
Dalata currently has a portfolio of 55 hotels across Europe the majority of which are in the UK and Ireland, operating under the midscale Clayton and Maldron brands. The brand is targeting expansion and announced a full scale strategic review ahead of a potential sale of the business.
