According to a statement released on Tuesday, the offer price of €6.05 per share represents a 27.1% premium to Dalata's shares before the sale process was announced in March. Eiendomsspar already owns about 8.8% of Dalata's shares.
Ireland’s largest hotel operator hired Rothschild & Co. to advise on options, including a sale, earlier this year, citing a weak share price that chairman John Hennessy said did not reflect the underlying value of the business, despite a steady rise in demand for hotels after the pandemic, which has led to a surge in deals backed by private equity.
The bidders have not yet participated in this sale process and have formulated their offer independently. They are also currently in talks with a “reputable European hotel operator” to conclude a framework agreement for the operation of Dalata hotels, should a deal go through, the statement said.
Dalata shares jumped 5% in Dublin on Tuesday and were last trading at €6.02. They have risen about 27% since the strategic sale plan was announced on March 6.
A company representative said that Dalata's board of directors would “naturally” consider the offer, declining to comment further.
Dalata Hotel Group, which operates a portfolio of 55 hotels, mainly in Ireland and the UK, with some in continental Europe, reported revenue growth of 7.3% last year, with adjusted EBITDA of €234.5m beating forecasts.
Pandox and Eiendomsspar warned that “there can be no assurance that any offer will be made” and while a potential offer is likely to be all-cash, terms could also be subject to change.
Source: Bloomberg
