Dalata Hotel Group has received a €1.3bn takeover offer from a consortium of Scandinavian companies three months after the Clayton and Maldron hotel operator first indicated it was open to a possible sale.
Sweden's Pandox AB and Norway's Eiendomsspar AS have submitted an all-cash offer to acquired the entire issued and to-be-issued share capital of Dalata.
The proposal comprises a cash offer of €6.05 per ordinary share, which represents a premium of 27.1% on Dalata's closing share price of €4.76 on 5 March, the last trading day prior to the group's announcement of a strategic review and formal sale process.
The offer is otherwise a 13.6% premium on the three-month volume weighted average price of approximately €5.32 for Dalata shares as at the close of business on Monday (2 June).
Eiendomsspar currently holds an 8.8% stake in Dalata, and it is expected that the consortium will form a company that will be indirectly owned or controlled by Pandox and Eiendomsspar for the purposes of implementing the proposal.
Should the deal go ahead, Eiendomsspar would contribute its Dalata shareholding to such a company.
In a statement, the consortium said it believes its proposal would deliver tangible and certain value for Dalata shareholders, fully in cash and at a meaningful premium.
"As established hotel investors with deep knowledge of the European hospitality sector and experience from successfully executing similar transactions in the UK and Ireland, the Consortium is well-positioned to support Dalata's business and long-term growth ambitions.
"The consortium is currently in negotiations with a reputable European hotel operator to conclude a framework agreement for the operation of the Dalata hotels should the consortium acquire Dalata.
"Such operator shares the consortium's commitment to long term profitable and sustainable growth."
Pandox and Eiendomsspar have until 15 July to make a firm offer to Dalata. Shares in Dalata are trading up 3% today.
Dalata's 2024 results show revenue increased year-on-year from €607.7m to €652.2m while adjusted EBITDA rose from €223.1m to €234.5m.
Profit after tax, however, declined 12.7% from €90.2m in 2024 to €78.7m last year, and earnings per share also declined, 12.1% on a basic basis (35.5c) and 3.1% on an adjusted basis (40.4c).
Revenue per available room, one of Dalata's key performance indicators, increased 1% like-for-like to €115.78 as average room rates rose 0.8% to €143.98 per night.
Under its 2030 Vision strategy, Dalata wants to increase its number of hotel rooms by 80% to 21,000 rooms that are either operational or under construction by the end of the decade. The group currently has fewer than 12,000 rooms.
Regarding the strategic review, Dalata CEO Dermot Crowley said in March that it would enable the group to assess available options to increase its access to capital and enhance shareholder value.
Photo: Dermot Crowley. (Pic: Stewart Attwood Photography)
