Nordic consortium announces €1.4bn takeover of Dalata Hotel Group
In its announcement, Pandox AB and Eiendomsspar said they have, through a newly incorporated company Bidco, announced a firm intention to make a cash offer for the entire share capital of Dalata Hotel Group plc.
The acquisition, at €6.45 a share, represents a premium of approximately 35.5% of the closing Dalata share price of €4.76 on March 5 2025 which was the last business day prior to the announcement by Dalata of the commencement of its strategic Review and formal sale process.
Since then Dalata shares have increased and on Monday were trading at over €6.50.
In early June, the board of Dalata rejected a €1.3bn takeover bid from the company, valued at €6.05 per share, as it believed it undervalued the company.
The acquisition values the entire issued and to be issued share capital of Dalata at approximately €1.4bn, on a fully diluted basis.
The board of Dalata has approved the acquisition as they believe it is in the best interests of shareholders.
Liia Nõu, chief executive of Pandox, said Dalata's portfolio consists of 'well-established and highly profitable four-star hotels in strong locations' which will 'contribute positively to the overall quality of Pandox's hotel property portfolio'.
Pandox is headquartered in Stockholm, Sweden, and its portfolio currently consists of 163 hotel properties, with approximately 36,000 rooms across 11 countries in Northern Europe.
Eiendomsspar Eiendomsspar is one of the largest real estate owners in Norway where it owns 11 hotels with another two hotels under construction. Eiendomsspar also controls approximately 36% of the voting shares of Pandox.
Bidco is a private company limited by shares incorporated under the laws of Ireland for the purpose of implementing the acquisition and is wholly-owned by Pandox and Eiendomsspar. On completion of the acquisition, it is expected that Bidco will be 91.5% owned by Pandox 8.5% by Eiendomsspar.
Bidco has signed a framework agreement with Scandic Hotels Group to be an operating partner for the existing Dalata portfolio from completion of the acquisition, with the intention, post-completion, to separate the real estate and hotel operating businesses in the Dalata Group.
The announcement said that the consortium is committed to Dalata staff as well as maintaining Dublin headquarters as part of a larger and well-established pan-European hotel platform.
Dermot Crowley, chief executive of Dalata, said this deal 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,' he said.
The acquisition is still subject to approval by Dalata shareholders.
Dalata's current portfolio comprises a portfolio of 56 hotel businesses, including 31 freehold and long leasehold properties, 22 leasehold hotels and three managed hotels in the Republic of Ireland, the UK, Germany and the Netherlands
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