Latest news with #Eiendomsspar
Business Post
2 days ago
- Business
- Business Post
Two Scandinavian firms have made a bid for Dalata – here's all you need to know about them
Business Post subscribers can read: • Who's behind Swedish hotel group Pandox and Norwegian property group Eiendomsspar • What the two groups own – and how they operate • Which other big name suitors are reportedly circling Dalata
Hospitality Net
3 days ago
- Business
- Hospitality Net
Dalata Draws a Line in the Sand, Spurning Pandox's 'Low-Ball' Bid
In a firm show of resolve, Dalata Hotel Group has slammed the door on an unsolicited €6.05-per-share cash approach from the Pandox–Eiendomsspar partnership, branding the proposal a glaring undervaluation of Ireland's largest hotel operator. Dalata's board—already running a formal sales process (FSP) as part of a broader strategic review—wasted little time before issuing a unanimous rejection. Even in the notoriously polite world of deal announcements, the subtext was unmistakable: thanks, but no thanks—come back when you understand our worth. Why the snub? At first glance, a headline price of 605 cents might look generous; it represents a tidy premium to where the shares traded before rumours of a sale began swirling in March. But Dalata's directors have done the maths. The group controls 53 hotels, a well-oiled development pipeline, and a balance sheet that weathered the pandemic better than many peers. With Irish and UK occupancy snapping back to record levels and RevPAR still climbing, management believes value will only fatten from here. More crucially, the Pandox consortium declined to join the board-run sales process—an early sign, Dalata feels, that the Swedish-Norwegian duo were unwilling to meet the same disclosure and timetable obligations demanded of other bidders. By ducking the data-room drill, Pandox forfeited its opportunity to sharpen the pencil. Clock is ticking for Pandox Under Irish Takeover Rule 2.6, the consortium now has until 5 p.m. (Dublin), 15 July to 'put up or shut up': either table a binding Rule 2.7 offer or announce it is walking away for at least six months. The Takeover Panel rarely grants extensions without compelling cause, so the midsummer deadline is real. What next for shareholders? For the moment, Dalata urges investors to sit tight. Several unnamed suitors remain inside the FSP's tent, each having fired in a non-binding proposal. If any sees strategic or synergistic sparkle that Pandox overlooked, a bidding contest could still break out. Yet nothing is guaranteed. Prospective buyers may balk at the very valuation uplift Dalata is chasing. And while trading momentum is strong, the hotel cycle can turn as swiftly as it recovers; the board's definition of 'full value' may prove elusive if financing costs creep higher through 2025. Still, yesterday's brusque rebuttal sends a clear message: Dalata believes it controls its own destiny—and won't relinquish it cheaply. Pandox must now decide whether to dig deeper or bow out. Either way, the coming six weeks promise to test convictions on both sides of the negotiating table. Read the full article at
Irish Independent
3 days ago
- Business
- Irish Independent
Dalata rejects takeover bid
The offer of €6.05 per share by Pandox and Eiendomsspar represented a premium of just over 27pc on the €4.76 closing price of March 5, the last trading day before Dalata announced it was launching a strategic review, with one option being a sale. It was a 14pc premium to the three-month average price of €5.32 per share. In an announcement made within hours of the offer being notified, Dalata said it had considered the bid, along with its advisers, and was rejecting it. 'The board announced a strategic review on 6 March to explore options available to optimise capital opportunities for the group and to enhance value for shareholders, including a Formal Sales Process (FSP) pursuant to the Irish takeover rules,' it said in a statement. 'The board continues to engage in constructive discussions with a number of parties who are participating in the FSP and who have submitted initial non-binding proposals to acquire the entire issued and to-be-issued share capital of the group. Pandox is not a participant in the FSP, having declined to enter the process on the terms set out.' Dalata said its board remains committed to the ongoing process, and a further announcement will be made in due course as appropriate. Shareholders were advised to take no action in relation to the Pandox offer. Russ Mould, an analyst with AJ Bell, had pointed out that the consortium's 27.1pc bid premium was below the 36pc average on UK-listed takeovers so far this year. 'That leaves scope for someone else to come along and offer slightly more,' he said. A number of American investment firms have already submitted bids for Dalata, according to reports by Green Street, a property news website. They are said to include Bain, Apollo and Starwood, which already owns 2.7pc of Dalata through an affiliate. The board of Dalata has hired Rothschild, an investment bank, to carry out the strategic review. The company is listed in Dublin and London, and its share price was boosted by the announcement of the bid. It was up over 8pc in London, to £5.10, and by over 5pc on Euronext in Dublin, reaching €6.07 at lunchtime. Eiendomsspar, one of the largest property owners in Norway, with its portfolio including 11 hotels, already has an 8.8pc stake in Dalata. It controls 36pc of the shares in Pandox, a Swedish firm that owns 163 hotels across 11 countries in Europe, with about 36,000 rooms. Based in Stockholm, Pandox develops and then leases hotels to operators under long-term deals. Its hotels in Ireland operate under the Leonardo brand. 'As established hotel investors with deep knowledge of the European hotel sector and experience in successfully executing similar transactions in the UK and Ireland, the consortium is well positioned to support Dalata's business and long-term growth ambitions,' it said in an announcement to the stock exchange. 'The consortium is currently negotiating with a reputable European hotel operator to enter into a framework agreement for the operation of the Dalata hotels if the consortium acquires Dalata. This operator shares the consortium's commitment to long-term profitability and sustainable growth.' Under takeover rules, the consortium has until July 15 to either announce a binding intention to make a bid for Dalata, or to pull out. Dalata, whose chief executive is Dermot Crowley and which was established in 2007, has a portfolio of 55 hotels in Ireland and Britain, both owned and leased, operating under the Maldron and Clayton brands.
Irish Independent
3 days ago
- Business
- Irish Independent
Takeover battle looms at Ireland's largest hotel operator
The offer of €6.05 per share by Pandox and Eiendomsspar represents a premium of just over 27pc on the €4.76 closing price of March 5, the last trading day before Dalata announced it was launching a strategic review, with one option being a sale. It is a 14pc premium to the three-month average price of €5.32 per share. Russ Mould, an analyst with AJ Bell, said: 'The big unknown is whether their proposed bid is enough to seal the deal and whether another party makes a higher offer. The consortium's 27.1pc bid premium is below the 36pc average on UK-listed takeovers so far this year. That leaves scope for someone else to come along and offer slightly more.' A number of American investment firms have already submitted bids for Dalata, according to reports by Green Street, a property news website. They are said to include Bain, Apollo and Starwood, which already owns 2.7pc of Dalata through an affiliate. The board of Dalata has hired Rothschild, an investment bank, to carry out the strategic review. The consortium said it has not participated in that process and formulated its proposal independently. Dalata is listed in Dublin and London, and its share price was boosted by the announcement of the bid. It was up over 8pc in London, to £5.10, and by over 5pc on Euronext in Dublin, reaching €6.07 at lunchtime. Eiendomsspar, one of the largest property owners in Norway, with its portfolio including 11 hotels, already has an 8.8pc stake in Dalata. It controls 36pc of the shares in Pandox, a Swedish firm that owns 163 hotels across 11 countries in Europe, with about 36,000 rooms. Based in Stockholm, Pandox develops and then leases hotels to operators under long-term deals. Its hotels in Ireland operate under the Leonardo brand. 'As established hotel investors with deep knowledge of the European hotel sector and experience in successfully executing similar transactions in the UK and Ireland, the consortium is well positioned to support Dalata's business and long-term growth ambitions,' it said in an announcement to the stock exchange. 'The consortium is currently negotiating with a reputable European hotel operator to enter into a framework agreement for the operation of the Dalata hotels if the consortium acquires Dalata. This operator shares the consortium's commitment to long-term profitability and sustainable growth.' ADVERTISEMENT Learn more Under takeover rules, the consortium has until July 15 to either announce a binding intention to make a bid for Dalata, or to pull out. Dalata, whose chief executive is Dermot Crowley and which was established in 2007, has a portfolio of 55 hotels in Ireland and Britain, both owned and leased, operating under the Maldron and Clayton brands. Its portfolio has grown by a third over the last four years, and it has declared an aim of having 21,000 rooms by 2030. In April, the company said it had done a deal with a Spanish real estate firm to lease to develop a Clayton hotel in Madrid. The share price was bumping along around the €4 mark for much of last year, leading its board to conclude that this did not reflect the asset base, performance, cash generation and growth prospects of the business. After the announcement of the strategic review, analysts at Jeffries said the external valuation on the estate of hotels was €1.64bn but adding in earnings from its leased estate, and its pipeline, the value could jump to 'at least €2bn'. Apart from Eiendomsppar, other prominent shareholders in Dalata include the Saudi conglomerate Zahid Group and the British hedge fund Helikon Investments, which has a stake of over 17pc. Barry English, founder of Winthrop Technologies, has built up a share of over 1pc in Dalata, but this is thought to be a value play rather than a signal of interest in purchasing, although he already owns Mount Juliet, the Johnstown Estate Hotel and Trim Castle Hotel.
RTÉ News
3 days ago
- Business
- RTÉ News
Consortium proposes to buy Dalata Hotel Group for €1.3 billion
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.
