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Irish Times
7 hours ago
- Business
- Irish Times
Nordic group mulls higher offer for Dalata as it buys more shares in Irish hotel chain
A Scandinavian consortium circling Dalata Hotel Group has signalled an interest in potentially making an improved offer for the business, after its €1.3 billion bid was rejected earlier this month. Oslo-based investment firm Eiendomsspar and Swedish hotel company Pandox, in which it owns an almost 25 per cent stake, said on Friday that they have bought 1.69 million shares in Dalata at €6.30 – marking a premium to the €6.05-a-share non-binding offer it had made for the company. 'Consequently, any firm intention to make an offer for Dalata by the consortium in accordance with Rule 2.7 of the Irish Takeover Rules, if made, will be at a price of not less than €6.30 per share,' the Nordic group said. 'There can be no certainty that any offer will be made. A further announcement will be made as appropriate. Any offer, if made, is likely to be solely in cash, although the consortium reserves the right to vary the form of consideration and/or introduce other forms of consideration.' READ MORE Eiendomsspar already owned an 8.8 per cent stake in Dalata before it made the bid approach. This latest share buying brings its stake in the Irish hotel group to 9.6 per cent. [ Dalata rejects surprise €1.3bn bid from Scandinavian consortium Opens in new window ] The property firm, which has a history of large investments in hotels, first emerged with a disclosable stake above 3 per cent in Dalata at the end of October. The company added to its stake the following month. But its chief executive, Sigurd Stray, sought to contain speculation at the time that it could amount to a strategic stake-build, telling The Irish Times he saw it as a 'financial investment' that would 'hopefully provide a fair return over time'. The early-June bid came as a surprise as the Pandox-Eiendomsspar consortium had not been involved in a formal sale process, managed by investment bank Rothschild, that has been going on in recent months. Dalata, which is led by chief executive Dermot Crowley, rejected that offer, saying it 'materially undervalues the group and its prospects'. [ Bidding war for Dalata Hotel Group hots up Opens in new window ] The board of Dalata, which floated on the stock market in 2014, hired investment bank Rothschild to carry out a strategic review of the business in March, following a sustained period of underperformance by the stock. Shares in Dalata jumped as much as 5.3 per cent to €6.53 on Friday afternoon, after the Pandox-Eiendomsspar consortium revealed its latest share purchase. The spike suggest that investors are holding out for a bid above the new floor that the consortium has set for a potential second tilt at the company.
Business Post
04-06-2025
- Business
- Business Post
Two Scandinavian firms have made a bid for Dalata – here's all you need to know about them
Business Post subscribers can read: • Who's behind Swedish hotel group Pandox and Norwegian property group Eiendomsspar • What the two groups own – and how they operate • Which other big name suitors are reportedly circling Dalata
New Straits Times
04-06-2025
- Business
- New Straits Times
Ireland's Dalata Hotel rejects US$1.5bil buyout proposal from Pandox, Eiendomsspar
KUALA LUMPUR: Ireland's largest hotel group Dalata on Tuesday rejected a 1.3 billion euro (US$1.48 billion) buyout proposal from Scandinavian property companies Pandox AB and Eiendomsspar AS for "materially" undervaluing it. Dalata, which launched a strategic review in March, said Pandox was not participating in its ongoing sale process, which has drawn interest from other potential bidders. The Irish group operates 55 hotels under the Maldron Hotel and Clayton Hotel brands, mostly in Ireland and Britain, and aims to expand its portfolio to 21,000 rooms across Ireland, the UK and continental Europe under its "2030 Vision" strategy. The proposal from the groups had comprised a cash offer of 6.05 euros per ordinary share of Dalata, representing a premium of about 5 per cent to Dalata's closing price on Monday. Shares of Dalata closed up 5.2 per cent at 6.06 euros on Tuesday, their highest since May 2019. It said it continues to engage in "constructive discussions" with other parties who have submitted initial non-binding proposals, without naming who they were. The Pandox-led consortium did not immediately respond to a request for comment on the rebuff by Dalata. Under Irish takeover rules, Pandox and Eiendomsspar had until July 15 to make a formal offer for Dalata or walk away. Norway-based Eiendomsspar is the second largest shareholder in the Irish group with a stake of around 8.8 per cent and in Pandox, in which it has a stake of around 8.5 per cent. Sweden-based Pandox AB specialises in the ownership, development and leasing of large hotel assets in major cities across Sweden and northern Europe. It has been expanding its portfolio through acquisitions and leases in key European cities including Stockholm, Berlin and Brussels. Dalata's adjusted core profit rose 5.1 per cent last year to 234.5 million euros as revenue grew 7.3 per cent to 652.2 million euros, driven by additions to its portfolio over the past two years.
Hospitality Net
03-06-2025
- Business
- Hospitality Net
Dalata Draws a Line in the Sand, Spurning Pandox's 'Low-Ball' Bid
In a firm show of resolve, Dalata Hotel Group has slammed the door on an unsolicited €6.05-per-share cash approach from the Pandox–Eiendomsspar partnership, branding the proposal a glaring undervaluation of Ireland's largest hotel operator. Dalata's board—already running a formal sales process (FSP) as part of a broader strategic review—wasted little time before issuing a unanimous rejection. Even in the notoriously polite world of deal announcements, the subtext was unmistakable: thanks, but no thanks—come back when you understand our worth. Why the snub? At first glance, a headline price of 605 cents might look generous; it represents a tidy premium to where the shares traded before rumours of a sale began swirling in March. But Dalata's directors have done the maths. The group controls 53 hotels, a well-oiled development pipeline, and a balance sheet that weathered the pandemic better than many peers. With Irish and UK occupancy snapping back to record levels and RevPAR still climbing, management believes value will only fatten from here. More crucially, the Pandox consortium declined to join the board-run sales process—an early sign, Dalata feels, that the Swedish-Norwegian duo were unwilling to meet the same disclosure and timetable obligations demanded of other bidders. By ducking the data-room drill, Pandox forfeited its opportunity to sharpen the pencil. Clock is ticking for Pandox Under Irish Takeover Rule 2.6, the consortium now has until 5 p.m. (Dublin), 15 July to 'put up or shut up': either table a binding Rule 2.7 offer or announce it is walking away for at least six months. The Takeover Panel rarely grants extensions without compelling cause, so the midsummer deadline is real. What next for shareholders? For the moment, Dalata urges investors to sit tight. Several unnamed suitors remain inside the FSP's tent, each having fired in a non-binding proposal. If any sees strategic or synergistic sparkle that Pandox overlooked, a bidding contest could still break out. Yet nothing is guaranteed. Prospective buyers may balk at the very valuation uplift Dalata is chasing. And while trading momentum is strong, the hotel cycle can turn as swiftly as it recovers; the board's definition of 'full value' may prove elusive if financing costs creep higher through 2025. Still, yesterday's brusque rebuttal sends a clear message: Dalata believes it controls its own destiny—and won't relinquish it cheaply. Pandox must now decide whether to dig deeper or bow out. Either way, the coming six weeks promise to test convictions on both sides of the negotiating table. Read the full article at
Irish Independent
03-06-2025
- Business
- Irish Independent
Dalata rejects takeover bid
The offer of €6.05 per share by Pandox and Eiendomsspar represented a premium of just over 27pc on the €4.76 closing price of March 5, the last trading day before Dalata announced it was launching a strategic review, with one option being a sale. It was a 14pc premium to the three-month average price of €5.32 per share. In an announcement made within hours of the offer being notified, Dalata said it had considered the bid, along with its advisers, and was rejecting it. 'The board announced a strategic review on 6 March to explore options available to optimise capital opportunities for the group and to enhance value for shareholders, including a Formal Sales Process (FSP) pursuant to the Irish takeover rules,' it said in a statement. 'The board continues to engage in constructive discussions with a number of parties who are participating in the FSP and who have submitted initial non-binding proposals to acquire the entire issued and to-be-issued share capital of the group. Pandox is not a participant in the FSP, having declined to enter the process on the terms set out.' Dalata said its board remains committed to the ongoing process, and a further announcement will be made in due course as appropriate. Shareholders were advised to take no action in relation to the Pandox offer. Russ Mould, an analyst with AJ Bell, had pointed out that the consortium's 27.1pc bid premium was below the 36pc average on UK-listed takeovers so far this year. 'That leaves scope for someone else to come along and offer slightly more,' he said. A number of American investment firms have already submitted bids for Dalata, according to reports by Green Street, a property news website. They are said to include Bain, Apollo and Starwood, which already owns 2.7pc of Dalata through an affiliate. The board of Dalata has hired Rothschild, an investment bank, to carry out the strategic review. The company is listed in Dublin and London, and its share price was boosted by the announcement of the bid. It was up over 8pc in London, to £5.10, and by over 5pc on Euronext in Dublin, reaching €6.07 at lunchtime. Eiendomsspar, one of the largest property owners in Norway, with its portfolio including 11 hotels, already has an 8.8pc stake in Dalata. It controls 36pc of the shares in Pandox, a Swedish firm that owns 163 hotels across 11 countries in Europe, with about 36,000 rooms. Based in Stockholm, Pandox develops and then leases hotels to operators under long-term deals. Its hotels in Ireland operate under the Leonardo brand. 'As established hotel investors with deep knowledge of the European hotel sector and experience in successfully executing similar transactions in the UK and Ireland, the consortium is well positioned to support Dalata's business and long-term growth ambitions,' it said in an announcement to the stock exchange. 'The consortium is currently negotiating with a reputable European hotel operator to enter into a framework agreement for the operation of the Dalata hotels if the consortium acquires Dalata. This operator shares the consortium's commitment to long-term profitability and sustainable growth.' Under takeover rules, the consortium has until July 15 to either announce a binding intention to make a bid for Dalata, or to pull out. Dalata, whose chief executive is Dermot Crowley and which was established in 2007, has a portfolio of 55 hotels in Ireland and Britain, both owned and leased, operating under the Maldron and Clayton brands.
