Listed hotel platform Dalata Hotel Group has agreed to be bought by hotel property investor Pandox and real estate group Eiendomsspar.
Pandox and its 36% shareholder Eiendomsspar are offering Dalata shareholders €6.45 cash for each share, representing a 35.5% premium to Dalata’s share price on 5 March, the day before its strategic review and formal sale process began.
Established in 2007, Dalata operates as a four-star hotel platform in the UK and Ireland, with an expanding presence in continental Europe. The Dalata group is listed on Euronext Dublin and the London Stock Exchange.
The buyers plan to take Dalata private through a court-sanctioned scheme, subject to approval by Dalata shareholders.
The Dalata board said it believes the acquisition is in the best interests of its shareholders, representing the most effective way to enhance value compared to other strategic options considered during its review.
Once the deal completes, the buying consortium is expected to be owned 91.5% by Pandox and 8.5% by Eiendomsspar.
Nasdaq Stockholm-listed Pandox owns a SEK76bn (€6.8bn) hotel portfolio consisting of 163 hotel properties with about 36,000 rooms across 11 countries in Northern Europe.
Liia Nõu, CEO of Pandox, said: “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.
“The hotel properties are of high technical standard and will contribute positively to the overall quality of Pandox’s hotel property portfolio.”
Eiendomsspar is among Norway’s largest real estate owners and it holds 11 hotels in Norway with a further two under construction.
Christian Ringnes, chairman of Eiendomsspar, said: “As the largest shareholder in Pandox and a joint offeror, we are enthusiastic about the acquisition of Dalata, which we view as one of the finest hotel companies in Northern Europe.
“We believe the combined forces of Pandox, Dalata and Scandic Hotels will provide strength and be a source of significant value creation.”
Dermot Crowley, CEO 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.”
John Hennessy, chair of Dalata, said: “Following a thorough and rigorous strategic review, incorporating a formal sales process, the board has determined unanimously that this transaction delivers compelling value and represents the best available strategic option for our shareholders.
“We believe that it is the right path forward for all stakeholders, and that it positions the business strongly for its next phase of growth under new ownership.”
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