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Dalata Hotel Group has agreed to a €1.4bn (£1.22bn) takeover by a consortium made up of Swedish property firm Pandox and Norwegian investor Eiendomsspar, following the conclusion of a strategic review announced earlier this year.
The consortium will acquire Dalata through a newly incorporated company, Pandox Ireland Tuck Limited.
According to the deal, shareholders will receive €6.45 (£5.60) in cash for each Dalata share. This represents a premium of about 35.5% to the closing price on 5 March, the day before the company announced its strategic review and formal sale process.
The offer also represents a premium of nearly 50% on Dalata’s 12-month volume-weighted average share price. The company’s board has unanimously recommended the offer, which values the entire issue and to be issued share capital at around €1.4bn (£1.22bn).
Under the proposed scheme of arrangement, Dalata would become a wholly owned subsidiary of Pandox Ireland Tuck Limited.
The deal is subject to shareholder approval, regulatory clearances, and sanction by the Irish High Court, and is expected to complete in the fourth quarter of 2025.
Dermot Crowley, chief executive of Dalata, said: “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. Our focus remains firmly on our people and our customers. I’m proud to continue to lead our team in close partnership with our new owners.
“Together, we will unlock new opportunities for the Clayton and Maldron brands as we continue to expand as a leading international hotel company.”
Liia Nõu, chief executive of Pandox, added: “Dalata’s portfolio consists of well-established and highly profitable four-star hotels in strong locations, which will further expand Pandox’s footprint in several large, dynamic and growing hotel markets in Northern Europe.”
Christian Ringnes, chairman of Eiendomsspar, described Dalata as “one of the finest hotel companies in Northern Europe”.
Dalata’s owned hotel portfolio, comprising 56 hotel businesses in Ireland, the UK, Germany and the Netherlands, was independently valued at about €1.6bn (£1.39bn) at the end of June. The consortium intends to separate the real estate and hotel operating businesses after completion, with an option for Scandic to acquire the operating business in a future transaction.
The consortium said it was committed to maintaining Dalata’s Dublin headquarters and to supporting its staff as part of a wider European hotel platform.
