Scandinavian property companies Pandox and Eiendomsspar have jointly proposed to buy Ireland’s largest hotel group Dalata Hotel Group for €1.3 billion, they said today.
Dalata operates 55 hotels under the Maldron Hotel and Clayton Hotel brands, mostly in Ireland and the UK, and aims to open new hotels in Europe including in Berlin and Madrid.
It launched a strategic review in March to explore options for enhancing shareholder value, including a potential sale.
The bid proposal comprises a cash offer of €6.05 per ordinary share of Dalata, representing a premium of about 5% to Dalata’s closing price yesterday.
Norway-based Eiendomsspar is the second largest shareholder in the Irish group with a stake of around 8.8% and in Pandox, in which it has a stake of around 8.5%.
Pandox and Eiendomsspar have until July 15 to make a formal offer for Dalata or walk away, under Irish takeover rules.
Dalata’s adjusted core profit rose 5.1% last year to €234.5m as revenue grew 7.3% to €652.2m, driven by additions to its portfolio over the past two years.
At its Capital Markets Day last year, Dalata outlined its “2030 Vision” strategy, aiming to expand its portfolio to 21,000 rooms across Ireland, the UK and Continental Europe.
Sweden-based Pandox 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 and its portfolio consists of 163 hotel properties with about 36,000 rooms across 11 countries in Northern Europe.
Eiendomsspar is one of the largest real estate owners in Norway and it owns 11 hotels in Norway, with another two hotels under construction. Eiendomsspar controls about 36% of the voting shares of Pandox.
Shares in Dalata Hotel Group moved higher in Dublin trade today.
