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RTÉ News
15-07-2025
- Business
- RTÉ News
Dalata Hotel Group agrees to €1.4 billion takeover deal
Scandinavian property companies Pandox and Eiendomsspar have agreed to buy Ireland's largest hotel group Dalata Hotel Group for €1.4 billion, the companies said today. Dalata shareholders will get €6.45 in cash per share, representing a premium of about 12% to the closing price on June 2 - the day before the Scandinavian hotel investors first disclosed their interest in the Irish company. Dalata had rejected an initial proposal in early June from Pandox and Eiendomsspar, valuing it at €1.3 billion, saying that the price undervalued the group. The latest offer, which has the backing of the board, concludes the Dublin-based company's strategic review that was launched in March to drive up shareholder returns. The cash offer of €6.45 per share also represents a 35.5% premium to the Dalata share price before the launch of its strategic review and formal sale process in March and a 49.7% premium to the 12 month volume-weighted average Dalata share price. Sweden-based Pandox will own 91.5% of the entity taking over Dalata, while Norway-based Eiendomsspar will own 8.5%, the companies said in a statement. Pandox's long-term operating partner, Scandic Hotels Group AB, will become an operating partner for the existing Dalata portfolio, they added. 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 Dalata Board said it believes the acquisition is in the best interests of Dalata shareholders and represents the most effective route to enhance value for shareholders, relative to Dalata's other strategic options which have been considered as part of its strategic review. Dalata said it will retain its staff, management team and Dublin headquarters as it continues to expand as an international hotel group. Dermot Crowley, CEO of Dalata, said the deal represents an exciting new chapter for Dalata in which it will become part of a larger hotel platform and will further accelerate its growth. He said the deal was a "very good fit" as it gives Pandox a large portfolio in Britain and Ireland, and Dalata better access to capital and a larger platform to accelerate growth. Dalata will continue to target new properties in the United Kingdom and Western and Southern Europe, he added. "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," the CEO added. John Hennessy, Chair of Dalata, said that after a thorough and rigourous 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 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," the said. "The value achieved reflects the hard work and professionalism of the exceptional people working in Dalata now and in the past, and we extend our sincere gratitude to everyone in the Dalata Group and to all who have contributed to the journey so far. We look forward to the company's continued success into the future," he added. Pandox CEO Liia Nõu said the portfolio consisted of "well-established and highly profitable four-star hotels in strong locations" that would increase its footprint in key markets. 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.
Irish Independent
15-07-2025
- Business
- Irish Independent
Nordic group to buy Dalata for €1.4bn
Pandox and Eiendomsspar, which had a bid rejected six weeks ago, have upped their offer by €0.40 to €6.45 per share. This is a 35.5pc premium to where the Dalata price stood before the hotel operator launched a strategic review and formal sale process on March 5. It was then €4.76. The improved bid is a 49.7pc premium to the 12-month volume-weighted average Dalata share price, and represents an acquisition equity value of €1.4bn. The earlier offer had valued the company at €1.3bn, but was rejected by the board on the basis that it materially undervalued the group. The acquisition must now be approved by Dalata shareholders. In a statement, Dalata pointed out that the equity value of the offer represents the highest market capitalisation for the company since its flotation in 2014. It also pointed out that the price is higher than anything offered during the formal sales process, which involved two rounds of bidding from both trade and financial buyers. 'The offer represents compelling value for shareholders following the persistent under valuation of Dalata over the previous years,' the company said. 'The offer provides investors with certainty of value, enabling them to realise the value of their investment in cash.' Eiendomsspar, one of the largest property owners in Norway, with its portfolio including 11 hotels, already had an 8.8pc stake in Dalata at the time of its first bid. 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. Liia Nõu, the chief executive 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.' The offer will be made through a newly incorporated company, Pandox Ireland Tuck Limited. The acquisition is being financed from a combination of existing cash resources available to the two companies, and a loan facility provided to Pandox by its existing lender DNB Bank. Established in 2007, Dalata has expanded into a leading four-star hotel platform in Ireland and the UK and now has 56 properties, plus 22 leased hotels. Dermot Crowley, the company's chief executive, 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. 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, the 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.'
Irish Examiner
15-07-2025
- Business
- Irish Examiner
Nordic consortium announces €1.4bn takeover of Dalata Hotel Group
A consortium of nordic hotel companies has announced a €1.4bn takeover of Irish hotel company Dalata, following a previous failed attempt, which has been accepted by the company's board. 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
Irish Times
15-07-2025
- Business
- Irish Times
Nordic group to make €1.4bn bid for Dalata
A Scandinavian consortium that has been circling Dalata Hotel Group announced on Tuesday a firm intention to make an improved offer of €1.4 billion for the business, which the board intends to back. The move comes six weeks after an initial offer by Oslo-based investment firm Eiendomsspar and Swedish hotel company Pandox, in which it owns an almost 25 per cent stake, saw their initial €1.3 million bid rejected by the Dublin-listed group. The planned offer of €6.45-a-share is 40 cents above the initial bid and marks a 35.5 per cent premium to Dalata's stock before the board launched a strategic review in early March. Dalata is run by chief executive Dermot Crowley. The deal, which would be carried out through a new vehicle called Pandox Ireland Tuck Limited, 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. READ MORE The consortium has signed up Scandic Hotels Group, which is almost 15 per cent owned by Eiendomsspar and runs 264 hotels, mainly on short-term leases, to be the operating partner for the Dalata portfolio following a purchase.
Irish Independent
23-06-2025
- Business
- Irish Independent
No new offer made for Dalata, board says
Earlier this month the board of Dalata rejected the offer of €6.05 per share by Pandox and Eiendomsspar, equivalent to a valuation of €1.3bn, saying it materially undervalued the group. The offer 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. The consortium announced on Friday that it had bought almost 1.7 million shares in Dalata, at €6.30. The stock was at €6.38 in early trading on Euronext Dublin today. The company, which owns 55 hotel properties in Britain and Ireland, is also listed in London. In a statement to investors, Dalata said it noted the announcement by the consortium of its purchase of another 0.8pc of the issued share capital. However it pointed out that the Pandox-led consortium had not made an offer for the company at that level. 'Since the Pandox possible offer of €6.05 per share approximately three weeks ago, the consortium has not submitted any further proposal to the board,' the statement said. 'Shareholders are advised to take no action in relation to the Pandox consortium announcement. The board continues to engage with parties who are participating in the Formal Sales Process and who have submitted revised non-binding cash proposals to acquire the entire issued and to be issued share capital of the group. 'A further announcement will be made as appropriate.' In accordance with Irish Takeover Rules, the Scandinavian consortium has until July 15 to either announce a firm intention to make an offer for Dalata, whose chief executive is Dermot Crowley, or to withdraw from the process. Eiendomsspar, one of the largest property owners in Norway, with its portfolio including 11 hotels, already had an 8.8pc stake in Dalata at the time of its bid. 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. The consortium's bid was unexpected, as it had not engaged in the formal sales process launched in May, which is being managed by the investment bank Rothschild. A number of American investment firms have 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. Several international financial institutions have increased their shareholdings in Dalata since the sales process started. They include the British bank Barclays, the French banks BNP Paribas and Societe Generale, and the international asset manager BlackRock. The businessman Barry English has also emerged as a shareholder. He already owns the five-star Mount Juliet estate in Kilkenny, Trim Castle Hotel, and the Johnstown Estate Hotel in Enfield.
